A group of 109 economists, business leaders, and former senior officials in Israel have issued a scathing statement against Prime Minister Benjamin Netanyahu's plan to use cryptocurrencies and blockchain technology to circumvent potential international sanctions. The signatories, including two Nobel Prize laureates and former Bank of Israel officials, warned that Netanyahu's approach demonstrates a 'fundamental lack of understanding' and could lead to irreversible economic damage.
The letter followed an interview where Netanyahu expressed indifference to sanctions, stating that US military aid 'is not something that will last forever.' The economists argued that his proposed crypto solution is 'bizarre' and 'of no help whatsoever,' comparing it to tactics used by criminal organizations. They cautioned that banking restrictions could cause soaring unemployment, the collapse of foreign investment, and the paralysis of Israel's high-tech sector.
The Bank of Israel responded by clarifying that cryptocurrencies cannot serve as a means to bypass sanctions, emphasizing the importance of maintaining economic relations with trading partners. Netanyahu, however, dismissed the central bank's advice, stating, 'I do what I think is right.' The business sector also rejected the proposal, with leaders warning that adopting such financial models could undermine investor confidence and Israel's credit rating.
The controversy has become a central issue in the ongoing election campaign, with opposition leaders condemning Netanyahu's plan. Yashar party chairman Gadi Eisenkot warned of severe economic consequences, while Opposition leader Yair Lapid accused Netanyahu of admitting that sanctions would lead to 'insane price increases' if his government is reelected.