Top Economists Warn Netanyahu's Blockchain Economy Plan Risks Severe Sanctions

The letter was prompted by remarks from Netanyahu on Friday, in which he stated he had commissioned a plan to prepare Israel for potential banking sanctions, suggesting the country organize an alternative economy using cryptocurrency. The signatories, who include Nobel laureates Yoel Mokyr and Aaron Ciechanover, former Bank of Israel Governor Yacov Frankel, and former Treasury officials, described the proposal as bizarre and typical of criminal organizations.

The experts warned that attempting to evade sanctions through cryptocurrency would be ineffective and could lead to severe economic collapse, soaring unemployment, a halt in foreign investment, and the paralysis of the high-tech sector. They cautioned that such measures could isolate Israel internationally, leaving citizens unable to use credit cards, shop online, or access global markets and essential medicines, ultimately impairing national defense capabilities.

While some targeted international sanctions currently exist, mostly concerning communities in Judea and Samaria, broad measures against Israel's banking system have not been imposed. The Bank of Israel and the business sector have rejected the cryptocurrency proposal, emphasizing the critical importance of preserving international trade relations and traditional banking ties.