Full coverage· Politics· Updated 21:18

Bank of Israel Rejects Netanyahu's Crypto Sanctions Plan

The Bank of Israel has rejected a proposal by Prime Minister Benjamin Netanyahu to transition Israel to a cryptocurrency-based economy as a means to bypass potential international sanctions. The central bank issued an unusual statement on Saturday, October 24, 2026, asserting that cryptocurrency cannot serve as a bypass route for sanctions and that operating globally solely through digital currencies is not feasible.

3 newsrooms · 3 languages · since 19:14

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What happened

01The Bank of Israel rejected Prime Minister Benjamin Netanyahu's proposal to use cryptocurrency to bypass potential international sanctions.
02The central bank stated that operating globally solely through cryptocurrencies is not feasible and cannot circumvent international sanctions.
03The Bank of Israel urged the political leadership to focus on preventing sanctions and maintaining ties with major trading partners.
04Prime Minister Netanyahu revealed he requested a plan for an economy-bypassing mechanism using blockchain technology to prepare for potential sanctions.
05Netanyahu stated that he also expects a halt to American military aid to Israel.
06In a televised interview on Saturday, Netanyahu acknowledged the bank's advice but asserted he would make the final decision based on his own judgment.

According to the Bank of Israel, the focus of the political leadership should instead be on preventing sanctions altogether and maintaining economic relations with key trading partners. The dispute arose after Netanyahu revealed he had requested a plan for an economy-bypassing mechanism, including blockchain technology, to prepare for potential economic or banking sanctions. Netanyahu also stated he expects a halt to American military aid.

In a televised interview on Saturday night, Netanyahu defended his economic policies and acknowledged the central bank's objections, but asserted his authority to make the final decision. He stated that cryptocurrency is only one of several measures being considered and that he would proceed with his own judgment to protect the economy.

Summarized by baba from the reports of 3 newsrooms. Updated 23:17

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