Economists Warn Netanyahu's Crypto Plan Risks International Isolation
Translated & summarized from N12 by baba
More than 100 former senior Israeli economic officials and academics have strongly criticized Prime Minister Benjamin Netanyahu's plan to use cryptocurrencies to bypass potential international sanctions. The signatories warned that Netanyahu's proposal, which they called bizarre and ineffective, could lead to economic isolation and severe consequences for daily life. The Bank of Israel also stated that cryptocurrencies are not a viable sanctions workaround, but Netanyahu indicated he would proceed based on his own judgment.
The story in 5 lines · by baba
- Over 100 former Israeli economic officials and academics criticized PM Netanyahu's crypto plan.
- They warned the plan could lead to international economic boycott and isolation.
- The Bank of Israel stated cryptocurrencies cannot bypass sanctions.
- Signatories cited potential impacts like blocked e-commerce and worker departures.
- Netanyahu acknowledged advice but stated he would act on his own judgment.
Over 100 former senior officials from the Bank of Israel and the Treasury, along with prominent figures from the economy and academia, have sharply criticized Prime Prime Minister Benjamin Netanyahu's plan to use cryptocurrencies to circumvent potential international sanctions.
In a joint letter, the signatories expressed "deep anxiety and concern" over Netanyahu's proposals, warning of "irreversible damage to the economy" if sanctions are imposed. They stated that Netanyahu is "consciously leading the State of Israel towards international economic boycott and isolation," and that his proposed solution, which they described as "bizarre" and typical of "criminal organizations," would be ineffective.
The letter comes in response to Netanyahu's recent remarks where he instructed that a plan be prepared to utilize alternative payment methods, including cryptocurrencies, to counter possible restrictions on the Israeli financial system. This initiative is reportedly a reaction to sanctions being advanced by Britain and several European countries over settler violence in the West Bank and construction in the Ma'ale Adumim area.
Among the signatories are Nobel laureates Professor Yoel Mokyr (Economics) and Professor Aaron Ciechanover (Chemistry), former Bank of Israel Governor Jacob Frenkel, former Deputy Governors Professor Zvi Eckstein, Professor Avia Spivak, and Dr. Nadine Bodow Trachtenberg, and former Directors General of the Ministry of Finance Yarom Ariav, Avi Ben Bassat, David Brodet, and Haim Shani.
The economists detailed potential daily life impacts of sanctions, including the inability for Israelis to use credit cards, the blocking of international e-commerce sites like Amazon and AliExpress, and mass departures of foreign workers unable to send money home. They also warned that the healthcare system could be unable to purchase medical equipment and medications, ultimately destroying the model of Israel as a modern economy.
The Bank of Israel itself has stated that cryptocurrencies cannot serve as a workaround for sanctions, emphasizing the importance of maintaining economic relations with key trading partners and preventing sanctions altogether. While Netanyahu acknowledged receiving advice from various sources, including the Bank of Israel, he maintained that he listens but ultimately does what he believes is right, suggesting in a later interview that cryptocurrency is just one of several potential tools, not the sole or even primary one.
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