developing· Politics· Updated 07:33

Bank of Israel Rejects PM's Crypto Sanctions Evasion Idea

The Bank of Israel has publicly rejected a proposal by Prime Minister Benjamin Netanyahu to use cryptocurrencies and blockchain technology to circumvent potential international banking sanctions. In an unusual weekend statement, the central bank declared that digital currencies cannot serve as a bypass route for sanctions, emphasizing that they are subject to the same regulations as other payment methods and that attempting to evade restrictions could lead to severe legal consequences.

15 newsrooms · 4 languages · since 24 Oct, 19:14

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Bank of Israel Rejects PM's Crypto Sanctions Evasion Idea — Illustration by baba

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What happened

01The Bank of Israel rejected Prime Minister Benjamin Netanyahu's proposal to use cryptocurrencies to bypass potential international sanctions.
02Netanyahu stated he ordered contingency plans using blockchain technology to prepare for banking sanctions and future U.S. aid cuts.
03The central bank emphasized that digital currencies are subject to the same regulations as traditional payment methods.
04Officials in Israel's economic ministries and the Prime Minister's Office were reportedly unaware of any crypto contingency plan.
05Netanyahu insisted on his authority to set economic policy independently of the Bank of Israel's recommendations.
06Opposition Chairman Yair Lapid and other political leaders warned that Netanyahu's policies would lead to severe economic isolation.
07The Israeli High-Tech Headquarters and economic experts cautioned that the proposal could destroy the nation's technology sector.

Netanyahu had revealed in a television interview that he ordered contingency plans involving decentralized currencies to prepare for potential Western sanctions and a projected decline in U.S. defense aid after President Donald Trump's term. However, sources within Israel's economic ministries and the Prime Minister's Office indicated they were unaware of any such initiative. Despite the central bank's opposition, Netanyahu asserted his authority to determine economic policy independently, stating that while he values expert input, the government makes the final decisions.

The central bank and economic experts urged a diplomatic focus on preventing sanctions and preserving vital trade relations with Western partners rather than seeking technological shortcuts. The Prime Minister's remarks drew sharp criticism from political opponents, including Opposition Chairman Yair Lapid, Naftali Bennett, and Gadi Eisenkot, as well as the Israeli High-Tech Headquarters, who warned that such a strategy would isolate Israel and devastate its technology sector.

Summarized by baba from the reports of 14 newsrooms. Updated 07:51