Netanyahu Sparks Outrage With Crypto Economy Proposal Amid Sanctions Fears

Prime Minister Benjamin Netanyahu has ignited controversy with remarks suggesting Israel should prepare for potential international economic sanctions by developing a "circumventing economy" based on cryptocurrency. Speaking in an interview with a business channel, Netanyahu stated that a halt to U.S. security aid to Israel is "only a matter of time" and that the country must brace for sanctions. He expressed concern over dependence on the United States, noting his ability to work with President Trump but acknowledging the need to prepare for a "rainy day" and achieve "armament independence."

Netanyahu specifically referenced Britain's recent sanctions against settlements as a precursor to broader measures, warning that the decades of U.S. aid, amounting to tens of billions of dollars, would not continue indefinitely. He proposed that to counter potential banking sanctions, Israel should organize around a cryptocurrency-based economy, revealing that he has already "asked to prepare the plan for this."

His proposed solution to potential U.S. aid cessation involves strengthening alliances with Middle Eastern countries, citing their current engagement with Israel due to its demonstrated strength. This stance echoes his "Sparta speech" from the previous September, where he discussed Israel's potential isolation in a world divided into blocs and the need to adapt to a more self-reliant, "super Sparta" economy.

The business community, represented by the Business Forum of approximately 200 leading executives, criticized Netanyahu's policies, calling them a dangerous and unprecedented economic and political low point that threatens Israel's survival in a globalized world. Gadi Eisenkot, Chairman of the Yisrael Beiteinu Party, condemned the "Bibi-coin" vision as a threat to national security, arguing it would lead to economic collapse, job losses, and emigration.

Former Prime Minister Naftali Bennett echoed these concerns, warning of the "destruction of Israeli high-tech, loss of livelihood for hundreds of thousands of families, poverty for millions of Israelis, severe damage to tourism and businesses, and a real danger to Israel's security." He likened Israel's potential isolation to that of Iran, North Korea, and Russia.

Bank of Israel officials responded by clarifying that cryptocurrencies cannot serve as a bypass for sanctions. They emphasized the importance of maintaining economic relations with key trading partners and focusing on preventing sanctions, stating that this issue falls under the political echelon's responsibility.