Israeli Prime Minister Benjamin Netanyahu has revealed plans to explore cryptocurrency and blockchain technology as a potential workaround for banking sanctions. In an interview on Israel’s Channel 10, Netanyahu stated that he has requested a plan to use decentralized technologies to circumvent possible financial restrictions. He emphasized the need for Israel to prepare for a future without U.S. military aid, which currently stands at $3.8 billion annually and expires in September 2028.
Netanyahu’s comments come just days before Israel’s national election on October 27. He acknowledged that the U.S. may impose banking sanctions, making it difficult for Israel to conduct international transactions. He suggested that blockchain could be one of the alternatives to navigate such restrictions, though he did not provide details on the specific cryptocurrency or network that would be used.
The approach mirrors strategies adopted by other sanctioned countries, such as Venezuela, Iran, Russia, and North Korea, which have used cryptocurrencies to bypass financial controls. For instance, Russia’s ruble-pegged stablecoin A7A5 moved about $102 billion in its first year before sanctions and other pressures reduced its daily volume by 96%. However, Netanyahu cautioned that crypto is not a foolproof solution, as blockchains are public and traceable.
Meanwhile, Israel’s largest bank, Bank Leumi, plans to offer Bitcoin trading in early 2027 through Galaxy Digital, pending regulatory approval. The move comes amid growing concerns about the economic impact of sanctions, with over 60 Israeli economists warning that measures targeting West Bank settlements could spread to the wider economy and raise living costs.