Netanyahu Explores Digital Currencies to Evade Potential Sanctions
Translated & summarized from Vesty by baba
Israeli Prime Minister Benjamin Netanyahu is considering digital currencies to counter potential banking sanctions, drawing inspiration from countries like Russia. Sanctioned entities reportedly received over $104 billion in cryptocurrencies in 2025, with Russia, Iran, North Korea, and Venezuela increasingly using digital assets to bypass financial restrictions. While Russia has launched a digital ruble for foreign trade, North Korea relies on cyber theft, and Iran uses crypto for financing. The article notes vulnerabilities in stablecoin-based schemes, prompting Russia's move towards an independent digital currency.
The story in 6 lines · by baba
- Prime Minister Benjamin Netanyahu suggested Israel prepare for potential sanctions by adopting digital currencies.
- Sanctioned entities received at least $104 billion in cryptocurrencies in 2025, an eightfold increase.
- Russia leads in using crypto for sanctions evasion, with its digital ruble handling over $93.3 billion.
- North Korea-linked hackers stole over $2 billion in cryptocurrencies in 2025, including a record $1.5 billion.
- Iran used crypto services for over $3 billion in financing regional allies and trade.
- Venezuela's state oil company shifted oil sales to USDT to avoid frozen revenues.
Israeli Prime Minister Benjamin Netanyahu stated on October 23 that Israel should prepare for potential banking sanctions, suggesting the adoption of digital currencies as a strategy. He pointed to the use of such tools by countries facing international isolation, citing Russia's digital ruble, which handles nearly $100 billion annually.
A Ynet publication on October 24 highlighted that sanctioned entities received at least $104 billion in cryptocurrencies in 2025, an almost eightfold increase from the previous year, according to Chainalysis. This surge has driven illicit activities on blockchain networks to a record $154 billion. Nations like Russia, Iran, North Korea, and Venezuela are increasingly integrating cryptocurrencies into their financial strategies to circumvent traditional banking systems.
Russia, facing international isolation due to the war in Ukraine, has become a leader in using crypto to bypass sanctions. A 2024 law permits digital assets for foreign trade, and a ruble-backed stablecoin, A7A5, launched in February 2025, has processed over $93.3 billion in less than a year. Despite U.S. and UK sanctions against companies involved in this project, registered in Kyrgyzstan, and the dismantling of the Russian crypto exchange Garantex by U.S., German, and Finnish authorities, the platform continues operations. Oleg Ogienko, head of the project's regulatory department, stated that the platform primarily facilitates Russian import and export payments, dismissing criticism as politically motivated.
Iran has also significantly utilized cryptocurrencies, with entities linked to the Islamic Revolutionary Guard Corps responsible for over half the value of transactions on Iranian crypto services, totaling over $3 billion for financing regional allies, oil trade, and procurement networks. Total crypto transactions in Iran were estimated between $8 to $10 billion last year. North Korea, conversely, relies on hacking groups, with Pyongyang-linked hackers stealing over $2 billion in cryptocurrencies in 2025, including a record $1.5 billion from the Bybit exchange hack. Venezuela's state oil company, PDVSA, has shifted oil sales to the USDT stablecoin to avoid freezing of revenue, a move accelerated after the return of U.S. sanctions.
However, these schemes have vulnerabilities. Approximately 84% of illicit crypto transactions involve dollar-pegged stablecoins. Following the closure of Garantex, $26 million in USDT was frozen, and Tether has pledged to block addresses linked to sanctioned individuals and organizations. This reliance on foreign-issued stablecoins is why Russia opted for its own independent digital currency.
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