Prime Minister Benjamin Netanyahu faced strong opposition from the Bank of Israel and political rivals after suggesting that cryptocurrency could help Israel evade potential international sanctions. In a statement, the central bank rejected the idea, asserting that cryptocurrencies “cannot be used as a route for bypassing sanctions.” Instead, the bank urged the government to focus on preventing sanctions and maintaining economic relationships with key trade partners.
Netanyahu had proposed the use of crypto and blockchain technology as a means to circumvent banking sanctions, which he warned could be imposed by the international community. He directed his advisers to prepare a plan for utilizing these decentralized systems. However, critics pointed out that while cryptocurrency can create alternative payment channels, transactions on many blockchain networks remain traceable, limiting its effectiveness in evading sanctions.
Opposition leaders were quick to condemn Netanyahu’s remarks. Yashar party leader Gadi Eisenkot accused the prime minister of “dismantling the Israeli economy” and warned that relying on crypto could lead to economic collapse, job losses, and a brain drain. B’Yachad party leader Naftali Bennett described Netanyahu’s vision as “defeatist and gloomy,” arguing that it would isolate Israel from the global economy. Yisrael Beytenu chairman Avigdor Liberman also criticized the proposal, noting that Netanyahu had previously blocked measures to regulate the crypto industry in Israel.
Netanyahu responded to the criticism by acknowledging the resistance but reiterated his commitment to his approach. “I hear the resistance; I am taking it into account,” he told Channel 14. “I thank the Bank of Israel for the advice. I listen, but I do what I think [is best].” His remarks came amid recent sanctions announced by Britain and other Western countries targeting goods from Israeli settlements in the West Bank, which economists warn could have broader economic repercussions for Israel.