The Bank of Israel has rejected Prime Minister Benjamin Netanyahu’s proposal to use cryptocurrency to bypass potential international sanctions, arguing that digital assets cannot replace established economic ties.
The central bank issued its response on Saturday after Netanyahu instructed advisers to develop a plan involving crypto and blockchain technology. Opposition leaders also criticized the idea, warning that avoiding sanctions could deepen Israel’s economic isolation.
Bank of Israel Urges Efforts to Prevent Sanctions
“The right thing for Israel’s economy is preserving the economic relationships with our principal trade partners and focusing on preventing sanctions and their negative influence on the economy,” the central bank said.
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Netanyahu acknowledged the opposition, telling Channel 14, “I hear the resistance; I am taking it into account.” However, he said he would continue to follow his own judgment.
The proposal followed sanctions announced by Britain and 11 other Western countries targeting goods from Israeli settlements in the West Bank.
Opposition Leaders Question Crypto Strategy
Opposition leader Gadi Eisenkot called the proposal a national security threat, warning that economic isolation could damage investment and employment.
Avigdor Liberman also questioned the plan, arguing that blockchain transactions can be traced, allowing authorities to identify and block wallets linked to sanctioned entities.
Former prime minister Naftali Bennett criticized the proposal as well, warning against Israel becoming disconnected from global markets.
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