not everywhere· Politics· Updated 24 Oct, 22:24

Bank of Israel Warns Against Crypto Use for Sanctions Evasion

The Bank of Israel has rejected a proposal by Prime Minister Benjamin Netanyahu to use cryptocurrency and blockchain technology to bypass potential international banking sanctions. In an unusual statement issued on Saturday evening, October 24, 2026, the central bank declared that digital currencies cannot serve as a workaround for sanctions, noting they are subject to the same regulations as other payment methods and that evasion attempts could carry severe legal consequences. The bank emphasized that the correct approach is diplomatic and political, focusing on preserving economic ties with main trading partners and preventing sanctions altogether.

11 newsrooms · 3 languages · since 24 Oct, 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 banking sanctions.
02The central bank stated that digital currencies are subject to standard regulations and cannot serve as a sanctions workaround.
03Netanyahu revealed he ordered contingency plans involving blockchain technology and decentralized currencies to prepare for potential financial isolation.
04Netanyahu also warned that Israel must prepare for a future cessation of U.S. defense assistance after President Donald Trump's term.
05Despite the central bank's objections, Netanyahu asserted his authority to determine economic policy and proceed with the initiative.
06Opposition Chairman Yair Lapid and other political leaders warned that Netanyahu's policies would lead to severe economic sanctions and isolation.
07The Israeli high-tech industry and economic experts strongly criticized the cryptocurrency plan, calling it dangerous and delusional.

The dispute arose after Netanyahu stated in a television interview that he had ordered contingency plans involving decentralized currencies to counter potential banking sanctions. Netanyahu also warned of a potential cessation of U.S. defense aid after President Donald Trump's term, asserting that Israel must prepare for these economic shifts. Despite the central bank's opposition, Netanyahu insisted he would proceed with exploring the initiative, asserting his authority to determine national economic policy.

Netanyahu's remarks drew sharp criticism from political opponents, economists, and the high-tech sector. Opposition Chairman Yair Lapid, Naftali Bennett, and Gadi Eisenkot warned that the prime minister's vision would lead to international isolation and devastate the Israeli economy. The High-Tech Council and industry figures, including Mellanox founder Eyal Waldman, cautioned that attempting to run an isolated economy on cryptocurrency is delusional and would destroy Israeli high-tech.

Summarized by baba from the reports of 11 newsrooms. Updated 00:27