Netanyahu suggests blockchain could help Israel avoid international financial sanctions
Netanyahu proposes using blockchain to bypass sanctions
Prime Minister Benjamin Netanyahu said on Friday that Israel is exploring the use of blockchain and cryptocurrency to avoid the economic impact of potential international financial sanctions. Speaking to a local television channel, the Prime Minister stated, “Blockchain is an alternative to sanctions.” This public comment signals that the Israeli government may begin treating digital currency as a tool for national economic defense.
Key points
- Netanyahu called blockchain a “national strategic tool” for bypassing banking restrictions.
- The Bank of Israel strongly rejected the idea, stating that cryptocurrencies cannot be used to bypass sanctions.
- Several election candidates and media critics criticized the proposal, arguing it does not replace a national financial system.
Context of the remarks
Netanyahu made these comments in a television interview two days before an upcoming national election scheduled for October 27. A dozen Western countries have recently announced sanctions targeting goods from Israeli settlements in the West Bank. Economists have warned that these sanctions could expand to affect the broader Israeli economy if not addressed.
What the central bank says
The Bank of Israel issued an official statement rejecting the Prime Minister’s proposal. The central bank stated clearly that cryptocurrencies “cannot be used as a route for bypassing sanctions.” This official stance contradicts the Prime Minister's claim that the technology could serve as a viable economic shield.
What remains unclear
It is not yet confirmed whether the government has a formal policy or technical plan to build a crypto-based system for sanctions avoidance. Critics, including Yediot Ahronot columnist Nadav Eyal, pointed out that digital currencies do not provide credit lines to banks or replace international capital markets. CryptoJungle founder Ben Samocha also noted that blockchain analysis tools can track and freeze illicit funds, making them unsuitable as a bypass tool for a formal economy.
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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