Netanyahu Defends Crypto Plan Amidst Bank of Israel Opposition

By דסק C14

Translated & summarized from Now 14 by baba

RightNeutral tone

Hebrew · 3 newsrooms covering

Prime Minister Benjamin Netanyahu stated he is considering cryptocurrency as a potential tool to bypass sanctions, despite opposition from the Bank of Israel. The central bank rejected the idea, emphasizing the importance of maintaining trade relations. Netanyahu acknowledged the objections but asserted his authority to make the final decision, citing Israel's economic strength and past success in thwarting sanctions.

The story in 5 lines · by baba

Prime Minister Netanyahu is exploring cryptocurrency as a potential tool against sanctions.
The Bank of Israel stated cryptocurrencies cannot bypass sanctions.
Netanyahu acknowledged objections but will make the final decision.
Israel has reportedly thwarted sanctions attempts in recent years.
Netanyahu defended his economic policies, citing unprecedented prosperity.

Prime Minister Benjamin Netanyahu responded to the Bank of Israel's opposition to his proposal for using cryptocurrency as a potential hedge against sanctions. In a televised interview on Saturday night, Netanyahu stated that while he hears the objections and takes them into account, cryptocurrency is just one of several potential measures being considered. He clarified that it's not the sole option and its use is not guaranteed.

The controversy began when Netanyahu revealed in an earlier interview that he had requested a plan to enable the country to operate via an "economy bypassing" mechanism, with blockchain technology being one of the alternatives explored, in case Israel faced economic or banking sanctions. He emphasized the need to prepare for such scenarios, mentioning that he is working on identifying currencies that can circumvent sanctions.

The Bank of Israel issued an unusual statement rejecting the idea, asserting that "cryptocurrencies cannot serve as a bypass route for sanctions." The central bank stressed the importance of maintaining economic relations with key trading partners and focusing on preventing sanctions rather than circumventing them. They directed the responsibility for addressing such threats to the political echelon.

Netanyahu, in his later interview, acknowledged the advice received from various parties, including the Bank of Israel, but maintained his prerogative to make the final decision based on his own judgment for the continued economic prosperity of Israel. He also claimed that Israel has successfully thwarted attempts to impose sanctions in recent years, citing counteractions against countries like the UK and efforts to mend relations with others. He expressed confidence in Israel's economic strength, particularly in fields like cyber and AI, which he believes deters other nations from imposing sanctions. Netanyahu also defended his economic policies, attributing unprecedented prosperity to his market-oriented approach, breaking monopolies, fostering competition, and reducing prices and taxes.