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Top Economists Warn Netanyahu Against Crypto Plan to Evade Sanctions
Prime Minister Benjamin Netanyahu has sparked intense controversy by proposing that Israel prepare a "bypass economy" using cryptocurrency and blockchain technology to circumvent potential international banking sanctions. Netanyahu, who warned that American security aid might eventually end, instructed officials to develop the plan. The initiative is reportedly a reaction to sanctions being advanced by Britain and several European countries over construction in Ma'ale Adumim and violence by Jewish residents in Judea and Samaria.
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What happened
- 01Prime Minister Benjamin Netanyahu proposed using cryptocurrency and blockchain technology to bypass potential international banking sanctions.
- 02The Bank of Israel rejected the proposal, stating that cryptocurrencies cannot serve as a bypass route for sanctions.
- 03Netanyahu warned that American security aid is likely to stop, stating "America has changed, it's over."
- 04Over 100 former economic officials, business leaders, and academics signed a letter warning that the plan could lead to international economic isolation.
- 05The signatories, including Nobel laureates Yoel Mokyr and Aaron Ciechanover, warned of mass unemployment and a collapse of the high-tech sector.
- 06The proposed plan is reportedly a reaction to sanctions being advanced by Britain and European countries over construction in Ma'ale Adumim and violence in Judea and Samaria.
- 07Professor Yaron Zelekha criticized the plan as "absurd" and a "disgrace," urging Netanyahu to focus on the rising cost of living instead.
The proposal was met with immediate and sharp opposition from the Bank of Israel, which clarified that cryptocurrencies cannot serve as a bypass route for sanctions. The central bank emphasized that Israel's primary economic interest lies in maintaining trade relations with its main partners and focusing on preventing sanctions altogether. Prominent economist Professor Yaron Zelekha also strongly criticized the plan, calling it "absurd" and a "disgrace" that demonstrates a lack of understanding of the economic situation.
Additionally, over 100 former senior Israeli economic officials, business leaders, and academics, including Nobel laureates Yoel Mokyr and Aaron Ciechanover and former Bank of Israel Governor Yakov Frenkel, signed a joint letter warning of "irreversible damage" to the economy. They cautioned that the plan, which they described as "bizarre" and typical of criminal organizations, could lead to international isolation, mass unemployment, and the collapse of the high-tech sector. Netanyahu defended his approach, stating that cryptocurrency is merely one of several potential measures under consideration.
Summarized by baba from the reports of 6 newsrooms. Updated
Latest report: Ynet. Read Ynet’s original
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Top Economists Warn Netanyahu Against Crypto Plan to Evade Sanctions
