Trade between the UAE and Israel is blossoming. Following the UAE-Israel Comprehensive Economic Partnership Agreement signed this year, bilateral trade is expected to rise to more than $10 billion and add $1.9b. to the UAE’s GDP within five years.
On the other hand, inflation is also steadily rising in Israel and globally, already hitting consumer confidence, and devastating the economy. And it’s no longer only tech. Black Friday sales may have hit new highs, according to Adobe Analytics, but that’s likely because consumers look for bargains ahead of the coming storm. H&M is already starting to lay off staff.
In this time of galloping inflation and rising interest rates, consumers are seeking ways to preserve their wealth. In Israel, banks have started to offer interest rates on savings accounts again, and returns can be even better at modest risk if you go for financial mutual funds.
Cryptocurrency has long been proposed as a possible hedge against inflation. But crypto powerhouses like the lending platform Celsius, run by the renowned Israeli entrepreneur Alex Mashinsky, collapsed recently, and have thrown the industry into turmoil. Furthermore, digital assets were already mired in huge price fluctuations, and companies lacking reserves still plague the industry.
In November, Sam Bankman Fried’s crypto empire FTX and a host of related companies filed for bankruptcy in what industry insiders described as crypto’s Lehman Brothers moment. FTX was the world’s second-largest crypto exchange, and the contagion’s width still needs to be settled. What’s clear, however, is that through corporate malfeasance FTX ended up with an $8b. hole on its books. These gigantic insolvencies burned multitudes of clients and will make up considerable hindrances to cryptocurrency mainstream adoption.
Israel's Illumishare will solve cryptocurrency issues
Illumishare, an Israeli blockchain-based digital asset management ecosystem, has partnered with the private office of his Highness Sheikh Mohamed Bin Ahmed Bin Hamdan Al Nahyan, from the Abu Dhabi Royal Family, in an attempt to use the latest blockchain technologies to solve these issues which cripple consumers and businesses.
Illumishare has unveiled a token backed by three uncorrelated assets, including gold, stored in a safe room at a bank in Abu-Dhabi and broadcast live 24/7. Even though uncorrelated assets support its SRG token, it’s not a stable coin because there isn’t a limit on its upside. The idea is more to prevent volatile downward swings.
“Through a combination of human capital, technology, cash, and gold, we have created a new transparent economy driven by innovation that doesn’t discount the historical security of uncorrelated assets,” says Ben Sharon, co-founder, and CEO of Illumishare.
By combining traditional economy methods with blockchain, Illumishare defines a new crypto category known as “Trust Token” with a “Proof-of-Gold” backed platform. This is a gold-backed, reliable practice answering the market’s demand for proof that crypto firms have the reserves they claim they do.
In Q2 of 2023, Illumishare will launch its asset-backed NFT marketplace. It incorporates the latest anti-fraud system, which will keep users safe and ensure that every project offered on the platform is genuine. It will only work with certified companies dedicated to tokenizing real estate assets, gold and diamond certifications, gold and diamond mines, and agricultural plants.