Israel's central bank and economists reject Netanyahu's plan to bypass sanctions with crypto
The Bank of Israel and more than 100 economists have rejected Prime Minister Benjamin Netanyahu's proposal to explore cryptocurrencies and blockchain to circumvent potential international banking sanctions, warning that such measures risk economic isolation.
The Bank of Israel has publicly rejected a proposal from Prime Minister Benjamin Netanyahu to use cryptocurrency and blockchain technology to bypass potential international financial sanctions, according to reporting by the Financial Times. In an official statement, the central bank stated that digital assets cannot serve as a means to circumvent sanctions and cautioned that the government must focus on preserving ties with primary trading partners to prevent harmful economic fallout.[1][2][9]
The controversy follows an interview in which Netanyahu warned that Israel could face international banking sanctions and disclosed that he had requested plans evaluating alternative financial rails. In response to pushback from central bank officials, Netanyahu remarked, "I listen, but I do what I think [is best]." The prospect of sanctions comes amid heightened diplomatic pressure from Western allies, including the United Kingdom, France, and Canada, over Israeli settlements in the West Bank.[5][8][9]
Opposition to the proposal quickly mounted among financial experts and policymakers. More than 100 economists, including Nobel laureates and former Bank of Israel governor Jacob Frenkel, signed a letter warning that attempting to evade sanctions with crypto could inflict severe economic damage and deepen national isolation. Opposition leaders and critics also cautioned that the strategy could leave Israel isolated similarly to sanctioned economies such as Iran, Russia, and Venezuela.[3][4][6][7][8]
Key facts
- The Bank of Israel rejected Prime Minister Benjamin Netanyahu's proposal to use cryptocurrencies to bypass potential international sanctions.
- Netanyahu requested exploratory plans for alternative financial systems, including blockchain and crypto, after warning Israel could face international banking sanctions.
- When confronted with the central bank's opposition, Netanyahu stated, 'I listen, but I do what I think [is best].'
- More than 100 economists, including Nobel laureates and former central bank governor Jacob Frenkel, signed a letter warning the crypto proposal risks economic isolation.
- The central bank urged the government to defuse mounting international pressure and maintain relationships with major trading partners.
Sources · 9 sources
- FT
Financial Times@FTPost on X ·
Israel central bank rejects Netanyahu’s plan to use crypto to evade sanctions https://t.co/n21BLVfiOE
Open source - TW
The Wolf Of All Streets@scottmelkerPost on X ·
🇮🇱 BANK OF ISRAEL REJECTS NETANYAHU'S CRYPTO PLAN, SAYS CRYPTOCURRENCIES CANNOT BE USED TO BYPASS SANCTIONS
Open source - DE
DecryptArticle ·
Israel's Central Bank Rebukes Netanyahu Plan to Use Crypto to Dodge Sanctions Over 100 economists, including former governor Jacob Frenkel, warned of deeper isolation ahead of Israel's October 27 national election.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Israel's Prime Minister Benjamin Netanyahu is facing criticism after proposing cryptocurrency as a way for the country to bypass potential international sanctions, Reuters reports. More than 100 economists, including former Bank of Israel officials and Nobel laureates, signed a letter warning that the plan risks economic isolation.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🇮🇱 BIG: The Bank of Israel just shot down Netanyahu's idea of using crypto to dodge sanctions, saying crypto "cannot be used as a route for bypassing sanctions." Netanyahu's reply: "I listen, but I do what I think [is best]." https://t.co/AfjXbXfVVg
Open source - C®
CryptoSavingExpert ®@CryptoSavingExpPost on X ·
More than 100 economists have now signed a letter warning that Israel's proposal to use crypto to bypass potential sanctions could damage its economy. The Bank of Israel has already rejected the idea. There's a distinction people need to understand here. Crypto can provide alternative ways to transfer value, but that doesn't make a country immune to sanctions or protect its businesses from losing access to international markets. The technology is neutral. The political and financial consequences of using it aren't.
Open source - MN
Mario Nawfal@MarioNawfalPost on X ·
🇮🇱Israel’s central bank SHUTS DOWN Netanyahu’s crypto plan to bypass sanctions. Facing global pressure over West Bank policies, Netanyahu wants an alternative crypto system to sneak past international banks, warning US military aid will eventually end. The bank slammed the move, warning it will turn Israel into an economic pariah on par with Iran and Venezuela. Source: FT / Writer: Bri
Open source - CB
Coin Bureau@coinbureauPost on X ·
UPDATE: Israel's central bank REJECTS Prime Minister Benjamin Netanyahu's plan to use CRYPTO to bypass potential international financial sanctions, per FT. The central bank warned that crypto cannot help Israel avoid sanctions and urged the government to protect its ties with major trading partners. The warning comes as the UK, France, Canada and other Western allies move to impose sanctions over Israeli settlements in the West Bank. Opposition leaders warned that the plan could leave Israel financially isolated, similar to Iran, Russia and Venezuela.
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Bank of Israel Rejects Netanyahu’s Proposal to Use Crypto to Evade Potential International Financial Sanctions According to the Financial Times, the Bank of Israel publicly rejected Prime Minister Benjamin Netanyahu’s proposal to use cryptocurrencies to circumvent potential international financial sanctions. On October 24, the central bank stated that crypto could not serve as a means of bypassing sanctions, urging the government to preserve economic ties with major trading partners and prevent further restrictions. In an October 23 television interview, Netanyahu warned that Israel could face international banking sanctions and said he had requested plans exploring alternative financial systems, including blockchain and cryptocurrencies.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🇮🇱 NEW: Netanyahu says Israel is exploring blockchain and crypto to get around potential international banking sanctions. https://t.co/7u1T6hdNH9
Open source