'BibiCoin policy': Netanyahu faces backlash over plan to use crypto to bypass sanctions - The Times of India
Israeli Prime Minister Benjamin Netanyahu has drawn criticism from the Bank of Israel after suggesting cryptocurrency could help bypass potential international sanctions.
In an interview with Israel's Channel 10 economic network on Friday, Netanyahu said he was preparing for a scenario where foreign governments could impose sanctions on Israeli banks. "There could be sanctions, and sanctions on banks so you need to set up a bypass economy," he said, confirming he was referring to cryptocurrency when asked directly.
The central bank rejected the proposal in a statement on Saturday, stating cryptocurrencies "cannot be used as a route for bypassing sanctions". It urged the government to prioritize maintaining economic relations with Israel's principal trading partners and preventing measures that could damage the economy.
There could be sanctions, and sanctions on banks so you need to set up a bypass economy.
Economic warnings grow
Netanyahu acknowledged the criticism later that day, telling Channel 14 he would take the bank's advice into account but would ultimately follow his own judgement. The remarks come amid growing diplomatic pressure on Israel over its settlement policy in the occupied West Bank.
On Sunday, more than 100 economists, including former Bank of Israel officials and several Nobel laureates, signed a letter warning that Netanyahu's proposal could trigger higher unemployment, falling foreign investment and further damage to Israel's international economic standing.
The economists cited countries including South Africa, Iran and Russia as examples of the economic consequences of sanctions, warning that Israeli living standards could deteriorate and the state's ability to finance its security could be undermined.
Political opposition mounts
Netanyahu's political opponents attacked the proposal ahead of Tuesday's election. His main rival, Gadi Eisenkot, described the plan as "madness", warning that what he called the "BibiCoin policy" could drive companies abroad and weaken national security.
Opposition leader Yair Lapid accused Netanyahu of making alarming promises to voters about the country's economic future. The controversy comes as Netanyahu faces pressure over both security and the economy, with Israel's military continuing a major operation in the occupied West Bank following a gun attack that killed two Israeli soldiers in Hebron on Friday.
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