Israeli Prime Minister Benjamin Netanyahu has revealed that his government is considering the use of cryptocurrency to bypass potential financial sanctions, a move that has sparked criticism from opposition leaders. In an interview with Israel’s Channel 10, Netanyahu stated, "We need to prepare ways to evade banking sanctions through an alternative economic system." When asked if he meant crypto, he responded, "Very correct."
The comments come ahead of the October 27 election, where Netanyahu faces a strong challenge from former general Gadi Eisenkot. Opposition leader Yair Lapid condemned the proposal, saying it would turn Israel into an "economic pariah like Iran." He added on social media platform X, "That’s his vision," comparing it to nations whose banks are cut off from the world.
The concern over sanctions stems from a September pledge by 12 major countries, led by Britain, to impose coordinated measures against Israeli settlements in the West Bank. British Foreign Secretary Ed Miliband stated that the measures would also target individuals and companies supporting the settlements, raising fears of banking restrictions that could disrupt Israel’s economy.
Former finance minister Avigdor Liberman criticized Netanyahu’s approach, arguing that the Prime Minister is focusing on evading sanctions rather than preventing them. Netanyahu also warned that decades of US military aid would end, forcing Israel to finance its defense independently. He noted that Israel has two more years with US President Donald Trump but must prepare for a less favorable Washington after his term.