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 backlash 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."
Netanyahu’s comments come ahead of the October 27 election, where he faces a strong challenge from former general Gadi Eisenkot. Opposition leader Yair Lapid criticized the proposal, comparing it to strategies used by countries like Iran, Russia, and Venezuela. "That’s his vision," Lapid posted on X, adding that such measures belong to nations facing severe economic isolation.
The discussion follows 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 warned that the sanctions could extend to individuals and companies supporting the settlements, raising concerns about potential banking restrictions on Israel.
Former finance minister Avigdor Liberman condemned Netanyahu’s approach, arguing that the Prime Minister is focusing on evading sanctions rather than preventing them. "He is finally admitting that Israel faces a real danger of diplomatic isolation and economic sanctions," Liberman said, vowing to eliminate the threat if the opposition takes power.
In the same interview, 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 afterward. The current memorandum of understanding provides US$3.8 billion annually through 2028, with an additional US$15 billion supplement during the ongoing war triggered by Hamas’ 2023 attack.