Top Economists Warn Netanyahu Against Crypto Plan to Evade Sanctions
Translated & summarized from Ynet by baba
More than 100 leading Israeli economists and business figures have sent a strong letter to Prime Minister Benjamin Netanyahu opposing his idea of using cryptocurrency to bypass potential international sanctions. They warn of severe, irreversible damage to Israel's economy, including high unemployment and collapsed foreign investment. The Bank of Israel has also criticized the crypto proposal, stating it cannot bypass sanctions. Netanyahu, however, maintains he will proceed with his own judgment.
The story in 5 lines · by baba
- Over 100 economists and business leaders warned PM Netanyahu against using crypto to evade sanctions.
- Signatories include Nobel laureates and former top finance ministry officials.
- They predict sanctions would cause irreversible economic damage and isolate Israel.
- The Bank of Israel also stated crypto cannot bypass sanctions.
- Netanyahu acknowledged advice but stated he will do what he thinks is right.
Over 100 leading economists, business figures, and former public service officials have penned a sharp letter to Prime Minister Benjamin Netanyahu, expressing deep concern over his suggestions to use cryptocurrency to circumvent potential international sanctions on Israel's banking system. The signatories warn that such sanctions would inflict "enormous and irreversible damage" on the country.
Among the prominent signatories are Nobel laureate in Economics Professor Yoel Mokyr, former Bank of Israel Governor Professor Jacob Frenkel, and Nobel laureate in Chemistry Professor Aaron Ciechanover. The letter also bears the signatures of four former Directors General of the Ministry of Finance: Yarom Ariav, Professor Avi Ben-Bassat, David Brodet, and Haim Shani.
The economists argue that banking sanctions would cripple the Israeli banking system, companies, exporters, and investors, particularly the high-tech sector, leading to soaring unemployment, a complete halt in foreign investment, and the collapse of Israel's international economic standing. They predict severe impacts on daily life, including difficulties with credit cards, blocked access to international e-commerce sites like Amazon and AliExpress, and foreign workers being unable to send money home. The healthcare system would struggle to procure medical equipment and medicines, ultimately "destroying the model that allows Israel to exist as a modern and advanced economy."
The letter draws parallels to countries like South Africa, Iran, and Russia that have faced similar sanctions, stating that Israel's standard of living would plummet, and its ability to fund defense and protect itself would be critically undermined. The signatories directly criticize Netanyahu, accusing him of "consciously leading the State of Israel towards international economic boycott and isolation" with a "bizarre solution accepted in criminal organizations" that demonstrates a "basic lack of understanding and ignorance" of Israel's declining international status.
This criticism echoes concerns previously voiced by the Bank of Israel, which stated that "cryptocurrencies cannot serve as a bypass for sanctions." The central bank emphasized the importance of maintaining economic relations with key trading partners and focusing on preventing sanctions altogether. Despite the widespread criticism, Netanyahu has not backed down, stating in a recent interview that crypto is "one of the means, not the only one" and that he listens to advice but "does what I think is right."
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