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 cryptocurrencies to bypass potential international sanctions, stating that digital currencies are subject to the same regulations as other payment methods and cannot serve as a workaround. The central bank emphasized that Israel's economic interest lies in maintaining strong relationships with its primary trading partners and preventing sanctions altogether, adding that attempting to evade sanctions via crypto could lead to severe legal and international consequences.

7 newsrooms · 3 languages · since 24 Oct, 19:16

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Bank of Israel Warns Against Crypto Use for Sanctions Evasion — Illustration by baba

What happened

01The Bank of Israel stated that cryptocurrencies cannot bypass international sanctions and are subject to standard financial regulations.
02Prime Minister Benjamin Netanyahu proposed using decentralized currencies and blockchain as a contingency plan against potential Western sanctions.
03Netanyahu warned that U.S. defense aid to Israel is likely to cease after President Donald Trump's term ends.
04The central bank urged the political echelon to focus on preventing sanctions and maintaining ties with primary trading partners.
05Netanyahu asserted his authority to set economic policy, stating he will proceed with the initiative despite the central bank's objections.
06Opposition Chairman Yair Lapid warned that security aid would cease and severe sanctions would be imposed if Netanyahu is re-elected.
07Industry figures, including Mellanox founder Eyal Waldman, and the High-Tech Council warned the plan would destroy Israeli high-tech.
08Politicians Naftali Bennett and Gadi Eisenkot criticized the plan as defeatist, warning it would lead to economic ruin and international isolation.

In a pre-election interview, Netanyahu expressed concern over potential Western economic and banking sanctions, stating he had ordered contingency plans involving decentralized currencies like blockchain. He also predicted a future cessation of U.S. economic aid after President Donald Trump's term, warning that America has changed and will not continue providing tens of billions of dollars for the defense budget. Despite the central bank's objections, Netanyahu asserted his authority to determine economic policy independently, citing his past economic achievements.

Netanyahu's remarks drew sharp criticism from political opponents, economists, and the high-tech sector. Opposition Chairman Yair Lapid agreed with the concerns about aid cuts and sanctions but warned they would occur if Netanyahu's government is re-elected. Naftali Bennett called the plan defeatist, Gadi Eisenkot warned it would cripple the economy, and the High-Tech Council, along with Mellanox founder Eyal Waldman, warned that the proposal is delusional and could destroy Israeli high-tech.

Summarized by baba from the reports of 7 newsrooms. Updated 24 Oct, 23:41