Economists and Business Leaders Slam Netanyahu's Crypto Plan

Over 100 prominent economists, business leaders, and former public service officials have penned a sharp letter to Prime Minister Benjamin Netanyahu, expressing deep concern over his proposal to use cryptocurrency to circumvent potential international sanctions.

The signatories warned that such sanctions, if imposed on Israel's banking system, would inflict "enormous and irreversible damage" on the country. They highlighted that the Israeli banking system, exporters, investors, and particularly the high-tech sector, the economy's growth engine, would be unable to function. The letter predicts a surge in unemployment, the complete disappearance of foreign investment, and a collapse of Israel's global economic standing.

The signatories, including Nobel laureate in Economics Professor Yoel Mokyr, former Bank of Israel Governor Professor Yakov Frenkel, and Nobel laureate in Chemistry Professor Aaron Ciechanover, along with four former Directors General of the Ministry of Finance, detailed the potential impact on daily life. They cautioned that Israelis might be unable to use credit cards, international e-commerce sites like Amazon and AliExpress could be blocked, and foreign workers might leave en masse due to difficulties in sending money home. The healthcare system could also struggle to procure medical equipment and medications, leading to the destruction of the model supporting Israel as a modern, advanced economy.

The letter directly criticizes Netanyahu, stating he is "consciously leading the State of Israel towards an international economic boycott and isolation." The signatories described his proposed crypto solution as "a bizarre solution common in criminal organizations, which will not help at all," and indicative of a "basic lack of understanding and ignorance" regarding Israel's international standing.

This criticism echoes concerns previously raised by the Bank of Israel, which stated that cryptocurrencies cannot serve as a bypass for sanctions and that preserving economic relations with trade partners is crucial. Despite the widespread criticism, Netanyahu has maintained his stance, suggesting in a recent interview that crypto is "one of the means, not the only one," and that he is listening to advice but "doing what I think is right."