not everywhere· Politics· Updated 25 Oct, 20:57

Netanyahu's Crypto Contingency Plan Sparks Fearmongering Debate

Prime Minister Benjamin Netanyahu has proposed a contingency plan to transition Israel to a cryptocurrency economy to bypass potential international economic sanctions. Speaking in interviews ahead of the upcoming parliamentary elections, Netanyahu warned that Israel must prepare for a future where traditional banking systems are blocked and U.S. security aid might cease, particularly after Donald Trump's presidency ends. He stated that government bodies are already developing strategies to utilize decentralized blockchain technology to circumvent restrictions.

9 newsrooms · 3 languages · since 24 Oct, 12:35

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What happened

01Prime Minister Benjamin Netanyahu proposed using cryptocurrency and blockchain technology to bypass potential international economic sanctions.
02The Bank of Israel officially rejected the proposal, stating that digital currencies cannot circumvent international sanctions.
03Over 100 former economic officials and academics warned the plan could cause international isolation, high unemployment, and capital flight.
04Yesh Atid leader Gadi Eisenkot called the proposal delusional and warned it would disconnect Israel from the global economy.
05Naftali Bennett and Yair Lapid warned the plan would destroy Israeli high-tech and lead to shortages of basic goods.
06Former Finance Ministry Director-General David Brodet warned that merely declaring the plan could cause immediate financial damage.
07Finance Minister Bezalel Smotrich has remained silent on the proposal despite growing political and economic concerns.

The proposal has drawn fierce condemnation from the Bank of Israel, which officially stated that digital currencies cannot serve as a workaround for international sanctions and advised focusing on preventing them instead. Additionally, over 100 former senior economic officials, Treasury staff, and academics, including former Bank of Israel Governor Yaakov Frenkel and Nobel laureates Yoel Mokyr and Aaron Ciechanover, signed an open letter warning that the plan could lead to international isolation, mass unemployment, capital flight, and the collapse of the high-tech sector.

Political rivals have also attacked the plan, with Yesh Atid leader Gadi Eisenkot calling it "delusional" and warning it would disconnect Israel from the global economy. Naftali Bennett warned of the destruction of Israeli high-tech, while opposition leader Yair Lapid cautioned that the policy would lead to shortages of basic goods. Meanwhile, Finance Minister Bezalel Smotrich has remained silent on the proposal, prompting questions from political observers as Britain reportedly considers sanctions against Israeli ministers and the Netherlands imposes import restrictions.

Summarized by baba from the reports of 9 newsrooms. Updated 00:57