In 2021, the Palestinian Monetary Authority (PMA) made headlines by exploring the development of a Central Bank Digital Currency (CBDC). With no independent currency of their own, Palestinians have long relied on the Israeli shekel, Jordanian dinar, and U.S. dollar for economic transactions. The PMA’s interest in creating a digital currency was a bold attempt to forge a path toward financial independence, aiming to ease domestic and international payments despite the challenges posed by regional economic conditions.
Feras Milhem, the governor of the PMA, announced that two studies on cryptocurrencies were underway. These studies were designed to explore the potential of a digital currency in mitigating the financial constraints imposed on Palestine. The Palestinian economy, heavily dependent on the Israeli shekel, faces significant challenges, including limitations on the transfer of shekels back to Israel and an overabundance of the currency in Palestinian banks due to Israeli anti-money laundering laws. These factors contribute to a strained financial environment, making the case for a Palestinian digital currency even more compelling.
However, analysts at the time were skeptical about the feasibility of a Palestinian CBDC. Raja Khalidi, director of the Palestine Economic Policy Research Institute, expressed doubts about the macroeconomic conditions necessary for a Palestinian currency, digital or otherwise, to function effectively as a medium of exchange. The nation’s deep financial dependence on external economies, the constant threat of conflict, and systemic barriers all contribute to an environment where economic stability is fragile at best. These factors, coupled with the devastating impact of ongoing conflict on critical infrastructure—such as the education system and other essential services—make it incredibly difficult for Palestine to rebuild and sustain economic independence. Despite these concerns, the PMA’s push for a digital currency highlighted the desperate need for a solution to Palestine’s financial challenges.
Enter Palshekel: A Modern Solution for Palestinian Sovereignty
This is where Palshekel enters the picture, recognizing that the fight for peace and economic stability is not just crucial for the future of Palestine but also for its aspiration to become a global leader. The road to sovereignty is complex and requires the development of leaders who are not only supported but also equipped to navigate the intricate geopolitical landscape. Education is paramount in this fight. It enables Palestinians to act smartly and diligently, fostering a well-informed population capable of efficient cooperation and strategic decision-making.
Fast forward to today, and the concept of a Palestinian digital currency has evolved with the rise of Palshekel. Unlike the 2021 attempt by the PMA, Palshekel is a token-based currency built on the Binance blockchain, designed specifically to address the needs of the Palestinian people.
Palshekel’s mission is to nourish and rebuild Palestine, to educate and support its people, and to inspire growth both morally and mentally, physically and structurally. Our vision is to provide the necessary tools for Palestinians to rebuild their society from the ground up, ensuring that everyone has access to the education and communication channels needed for effective collaboration. While the challenges are immense, Palshekel understands that everything takes time—and time is one resource we have for sure. Starting is most important.
By focusing on long-term goals like job creation, financial inclusion, and the development of future leaders, Palshekel aims to improve the very macroeconomic conditions that have hindered Palestine’s financial independence. Through targeted initiatives, Palshekel seeks to build a more resilient and self-sufficient Palestinian economy, making the dream of a truly independent digital currency more achievable.
