The remarks come amid growing diplomatic pressure on Israel over its settlement policy in the occupied West Bank
In an interview with Israel’s Channel 10 economic network on Friday, Netanyahu said he was preparing for a scenario in which foreign governments could impose sanctions on Israeli banks. On Sunday, more than 100 economists, including former Bank of Israel officials, ex-central bank governor Jacob Frenkel and several Nobel laureates, signed a letter warning that Netanyahu’s proposal could trigger higher unemployment, falling foreign investment and further damage to Israel’s international economic standing. Britain, France, Canada and other Western countries have announced measures targeting goods from Israeli settlements, citing concerns over settler violence and settlement expansion.
“There could be sanctions, and sanctions on banks so you need to set up a bypass economy,” he said, confirming that he was referring to cryptocurrency when asked directly. Israeli Prime Minister Benjamin Netanyahu has drawn a rare rebuke from the Bank of Israel after suggesting that cryptocurrency and blockchain technology could help the country circumvent potential international sanctions. He added that blockchain technology was another possibility and that he had asked his advisers to prepare a plan. The remarks come amid growing diplomatic pressure on Israel over its settlement policy in the occupied West Bank.
Earlier reporting noted: In an interview with Israel’s Channel 10 on Friday, Netanyahu said he was preparing for a scenario in which broader sanctions were imposed on Israel.
The central bank rejected the proposal in a statement on Saturday, saying cryptocurrencies “cannot be used as a route for bypassing sanctions”. His main rival, Gadi Eisenkot, described the plan as “madness”, warning that what he called the “BibiCoin policy” could drive companies abroad and weaken national security. The operation has displaced thousands of Palestinians, according to local officials, and imposed sweeping restrictions on movement. Earlier reporting noted: Last month, Britain , France and Canada said they would block imports from Israeli settlements in the West Bank in what was the latest in a series of actions targeting Israel’s settlement policy, underscoring its growing diplomatic isolation among some of its traditional allies.
It urged the government to prioritise maintaining economic relations with Israel’s principal trading partners and preventing measures that could damage the economy. Netanyahu’s political opponents also attacked the proposal ahead of Tuesday’s election. Opposition leader Yair Lapid accused Netanyahu of making alarming promises to voters about the country’s economic future. The controversy comes as Netanyahu faces pressure over both security and the economy.
Earlier reporting noted: Netanyahu explores cryptocurrency to bypass economic sanctions, faces backlash Prime Minister Benjamin Netanyahu , who faces re-election this week, is drawing criticism from economists and political rivals after suggesting Israel could use cryptocurrency to help shield its economy from potential international sanctions. Israel’s military continued a major operation in the occupied West Bank on Sunday following a gun attack that killed two Israeli soldiers in Hebron on Friday.