54 regard to Smart Contracts. Academics and others generally conclude that the local legal environment (e.g. Contracts and other laws, related regulations and court precedents) allows for the implementation and legal use of Smart Contracts in Israel. In the interim, until local laws and regulations specifically embracing Smart Contracts are enacted, additional validity and legitimacy may be obtained through court reviews and precedents. Recently, the Accountant General of the Ministry of Finance and the Tel Aviv Stock Exchange have executed a feasibility test (Proof of Concept) of a blockchain-based issue and the clearing of government bonds. Smart Contracts were used as part of the above-mentioned 'dummy issue'. The related press release states the following: "At the heart of this process is a dedicated Smart Contract for bond management, which serves as an intermediary that enables the smooth and secure transfer of digital payment tokens against digital bonds". It is the Israeli perspective that the application of Smart Contracts and their accompanying technologies will improve efficiency concerning future transactions as in the above-mentioned bond issue, and at the same time reduce risks for the parties involved, including investors in the financial markets. Conclusion There are significant advantages in executing transactions through Smart Contracts. The 'automated procedure' provides certainty and definitive performance, while eventually requiring the investment of less resources and expenses. Smart Contracts will probably become a significant legal and commercial vehicle in the near future globally as well as in Israel. The legal system in Israel in its entirety can comprehend and positively relate to Smart Contracts, yet specific laws and regulations will be required as the Smart Contracts and the related technologies evolve.
RkJQdWJsaXNoZXIy MjgzNzA=