Economists Warn Crypto Plan to Evade Sanctions is a "Criminal Organization Solution"
Translated & summarized from Davar by baba
109 Israeli economists and business leaders warned Prime Minister Benjamin Netanyahu against using cryptocurrency to bypass sanctions, calling it a "criminal organization solution." They predict severe economic damage, including unemployment and loss of investment, and direct harm to citizens' daily lives. The economists stated the plan would lead to international isolation and a drastic drop in living standards. They urged against this move, citing examples of countries that faced similar sanctions.
The story in 5 lines · by baba
- 109 Israeli economists warned against using crypto to bypass sanctions, calling it a "criminal organization solution."
- The economists predict severe economic damage, including soaring unemployment and lost foreign investment.
- Citizens could face issues with credit cards, online shopping, and foreign workers' remittances.
- The plan could lead to international isolation and a drastic drop in living standards, similar to Iran or Russia.
- Signatories include former top finance officials, a Nobel laureate, and business leaders.
A group of 109 prominent Israeli economists, business leaders, and former public service officials have issued a stark warning against Prime Minister Benjamin Netanyahu's consideration of using cryptocurrency to bypass potential future international sanctions on Israel's banking system. The economists, organized under the Forum of Economists, argue that such a move would inflict "enormous damage" on the Israeli economy, leading to soaring unemployment, the disappearance of foreign investment, and a collapse of Israel's international economic standing.
They predict severe direct impacts on citizens, including the inability to use credit cards, blocked access to international e-commerce sites like Amazon and AliExpress, and difficulties for foreign workers sending money home. The healthcare system would also be affected, struggling to procure medical equipment and medications. The economists drew parallels to countries like South Africa, Iran, and Russia that have faced severe sanctions, forecasting a drastic drop in living standards for Israelis and a critical blow to the nation's ability to fund its defense.
The signatories accuse Netanyahu of "consciously leading the State of Israel to international economic isolation and boycott." They describe his proposed crypto solution as "a bizarre solution accepted by criminal organizations" and indicative of a "basic lack of understanding and ignorance" regarding Israel's international standing.
Notable signatories include former Ministry of Finance Director General Yarom Ariav, former National Economic Council Chairman Manuel Trajtenberg, Nobel laureate in Economics Yoel Mokyr, former Bank of Israel Governor Jacob Frenkel, Shoresh Institution President Dan Ben-David, BIG Shopping Centers CEO Hagai Galis, and Forum Chairman Professor Itai Atter of Tel Aviv University.
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