Israeli Prime Minister Benjamin Netanyahu is facing backlash for proposing the use of cryptocurrency to circumvent potential economic sanctions. In an interview with Israel's Channel 10 on Friday, Netanyahu discussed preparations for broader sanctions, mentioning the possibility of using digital currencies to bypass restrictions. He confirmed that blockchain technology was also under consideration.
The Bank of Israel swiftly rebuked the idea, stating that cryptocurrencies cannot serve as a means to evade sanctions. The central bank urged political leaders to focus on policies that prevent sanctions rather than finding ways to bypass them.
On Sunday, over 100 economists, including former Bank of Israel officials and Nobel laureates, signed a letter condemning Netanyahu's proposal. They warned that such a plan would lead to higher unemployment, a decline in foreign investment, and a collapse of Israel's global economic standing. The letter compared the potential outcomes to those experienced by sanctioned countries like South Africa, Iran, and Russia.
Netanyahu's political rivals have also criticized the plan. Gadi Eisenkot, his main election opponent, called it "madness" and expressed concerns about national security. Opposition leader Yair Lapid accused Netanyahu of leading Israel toward economic isolation, comparing the situation to the bread lines seen in Russia and Iran.