Israeli Prime Minister Benjamin Netanyahu has proposed using blockchain technology and cryptocurrencies as a way to avoid potential financial sanctions. In an interview with Israel’s Channel 10 economic network on Friday, Netanyahu described blockchain as an “alternative to sanctions” and a “national strategic tool.” This marks a shift in the government’s approach to digital currencies, moving from viewing them as an investment opportunity to a key part of the country’s economic defense strategy.
The comments come as a dozen Western countries have announced sanctions targeting goods from Israeli settlements in the West Bank. These sanctions, which could extend to Israel itself, have raised concerns about economic strain. Netanyahu’s suggestion signals a potential pivot in how Israel might navigate these challenges.
Not everyone supports the idea. Yashar party leader Gadi Eisenkot criticized Netanyahu’s proposal on X, calling it a “threat to national security.” The Bank of Israel also rejected the prime minister’s suggestion, stating that cryptocurrencies “cannot be used as a route for bypassing sanctions.” The debate comes ahead of Israel’s elections on October 27, where Netanyahu’s stance on blockchain could become a key issue.