Ex-Finance Official Warns Netanyahu Crypto Plan Risks Severe Economic Damage
Translated & summarized from Calcalist by baba
Former Israeli Finance Ministry Director-General David Brodet warned that Prime Minister Benjamin Netanyahu's suggestion to use cryptocurrency against financial sanctions is a "high-price spin" that could cause immediate damage. Brodet stated that the mere declaration could lead financial institutions to prepare for sanctions, impacting trade, investment, and high-tech sectors. He argued that cryptocurrency is not a viable solution and that the sanctions threat is linked to the government's settlement policy.
The story in 5 lines · by baba
- Former official David Brodet warned Netanyahu's crypto plan against sanctions is a "high-price spin."
- Brodet stated the mere declaration of using crypto could cause immediate financial damage.
- He argued that a financial sector attack is more severe than other sanctions.
- Brodet dismissed cryptocurrency as an inadequate solution for sanctions.
- He linked the sanctions threat to the government's settlement policy.
Former Director-General of the Ministry of Finance and Chairman of Bank Leumi, David Brodet, has issued a stark warning regarding Prime Minister Benjamin Netanyahu's suggestion of using cryptocurrency to counter potential financial sanctions. Brodet described the prime minister's statement as "more serious than the "Sparta" incident," emphasizing that the mere declaration, even if the sanctions do not materialize, could inflict significant damage. He explained that such pronouncements can cause investors and financial institutions to prepare for a scenario that has not yet occurred, potentially leading to negative market reactions and international media attention.
Brodet, who was among 109 economists, business figures, and former public servants who signed a letter opposing Netanyahu's plan, elaborated on the potential consequences. He contrasted the current situation with the "Sparta" incident, where the prime minister later clarified his remarks related to defense industry independence. Brodet argued that while that had its own costs, impacting areas like education and health, a blow to the financial sector is far more damaging. He stated that an attack on banking and finance, the "circulatory system of the economy," is the most severe form of sanction, potentially leading to a loss of access to credit and international messaging systems like SWIFT, effectively isolating Israel like Iran, Russia, or North Korea.
He illustrated the impact on ordinary citizens, explaining that a broad financial cutoff could prevent online purchases, international credit card usage, and even affect travel bookings. Brodet dismissed the cryptocurrency proposal as an inadequate solution, noting that most hotels and businesses do not accept crypto payments. He pointed out that current crypto usage is primarily for speculative investment or by those seeking to evade authorities, such as terror financiers and drug traffickers, and that countries imposing sanctions could still regulate these channels.
Brodet concluded that the sanctions threat stems from the government's settlement policy and Jewish terrorism in the territories. He asserted that if the prime minister wishes to continue this policy, he must be prepared to accept the severe economic consequences.
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