Core Insights - The Bank of Israel is preparing for more active oversight of stablecoins, recognizing their significant role in global money flows with a market capitalization exceeding $300 billion and monthly transaction volume surpassing $2 trillion [1][2] Group 1: Regulatory Oversight - Governor Amir Yaron emphasized that stablecoins can no longer be treated as a marginal phenomenon, comparing their scale to that of a mid-sized global commercial bank [2] - The concentration risk in the stablecoin market is highlighted, with 99% of stablecoin activity controlled by Tether and Circle, which raises systemic vulnerabilities and the need for regulatory clarity [3] Group 2: Regulatory Framework and Recommendations - Yaron outlined key priorities for private issuers and supervisors, including the necessity for 1:1 reserve backing, liquid reserve assets, and a scalable regulatory framework [3] - The Bank of Israel is accelerating its plans for a Central Bank Digital Currency (CBDC), with a roadmap for the digital shekel set to be released by the end of the year [4][5]