A new digital currency is born today: The Jerusalem Lira challenges the traditional system

“Use the silver to buy whatever you like” Deuteronomy 14:26

Technological innovation within the cryptocurrency industry has until now emanated from two regions of the world which are synonymous with modernity and avantgarde thought: Silicon Valley, California, and Tokyo, Japan.

Whilst Tokyo is the de facto home of Bitcoin, California’s San Francisco suburbs are home to the technological drive toward making virtual currencies a tour de force within not only peer to peer payment circles, but also as a global epicenter for investment in the development of Blockchain technology which is now being widely adopted by institutional financial giants for the automation of their systems.

Today, therefore, marks a new chapter in the cryptocurrency world, as a new digital, peer-to-peer social currency has been launched, however this time it does not hail from the ultra-modern technology centers of Tokyo or San Francisco, nor do its origins lie in the highly advanced fintech center of Tel Aviv. Instead, the new cryptocurrency has been launched in Jerusalem, the holy city.

Carrying the name ‘Jerusalem Lira’ or לירה ירושלמית in Hebrew, the new social currency was launched today as a peer-to-peer payment method which intends to bypass the sovereign system. Users can buy and sell goods, and create their own marketplaces.

Although the Jerusalem Lira was officially launched today, it has gained 183 members and has a range of lifestyle related products and services listed on its website which display discounts compared to the Israeli Shekel value if paid for in Jerusalem Lira.

Unlike many cryptocurrencies, the Jerusalem Lira is not exchange traded. Instead, it operates as an online community which requires registration in a way that resembles many group purchasing sites or social media-based discount websites, and differs from other virtual currencies in that it is not ‘mined’ by individuals, instead it is purchased directly from its host, which is conducted through its website group.market/jmlira

The State of Israel has been very friendly toward the use of virtual currencies, especially the development of technology that enables the distribution of virtual currency. Indeed, Tel Aviv was one of the first cities in the world to gain a Bitcoin ATM which was installed in June 2014. The Robocoin machine, which was imported to Israel by Bitbox, allows two-way transactions.

An interesting initiative, the Jerusalem Lira emulates virtual currencies yet is provided in a very different way altogether, an interesting decision by the firm especially during a time in which e-commerce via sites operated by retail vendors with a unique advantage are becoming unceasingly popular.