The Central Bank of Israel is keeping an eye on stablecoins: the $300 billion market can no longer be left unattended.

[Chain News] The Central Bank of Israel has recently taken a tougher stance on stablecoins.

Central Bank Governor Amir Yaron candidly stated at the payment conference in Tel Aviv: stablecoins are no longer some fringe play. The data speaks for itself - the global market capitalization of stablecoins has surpassed $300 billion, with a monthly trading volume exceeding $2 trillion. Given this scale, regulators can no longer pretend not to see.

What is even more alarming is the concentration of the industry. Yaron specifically pointed out that 99% of the entire stablecoin market is monopolized by two companies: Tether and Circle. This extreme concentration means that if either one encounters problems, the entire system could be affected. Systemic risks are present, and the regulatory framework must keep up.

So how to manage? Yaron provided several hard indicators:

• The issuer must guarantee a 1:1 adequate reserve.
• Reserve assets must have liquidity
• Establish a practical and scalable regulatory system

At the same time, Israel is also advancing its own digital currency project. Yoav Soffer, the head of the digital shekel project, revealed that their goal is to create a “universal Central Bank digital currency.” The project roadmap has been scheduled until 2026, and a formal policy proposal will be released by the end of this year.

While keeping a close eye on private stablecoins, the intention of regulation is already very clear with the push for their own CBDC.