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

The economists warned that attempting to evade sanctions through digital currencies would fail and instead inflict immense, irreversible damage on the Israeli economy. They predicted that comprehensive banking sanctions would lead to soaring unemployment, capital flight, a collapse in foreign investment, and the paralysis of the high-tech sector. The Bank of Israel also rejected the proposal, stating that cryptocurrencies cannot bypass sanctions and emphasizing the critical need to preserve international trade relations.

According to the letter, the fallout would directly disrupt daily life for Israeli citizens, potentially blocking credit card usage, restricting access to international e-commerce sites like Amazon and AliExpress, and hindering foreign workers from sending money home. The signatories also warned of severe shortages in medical equipment and medicines, a drastic drop in living standards, and a critical blow to Israel's national defense capabilities, drawing parallels to the severe isolation experienced by South Africa, Iran, and Russia.