Netanyahu Says Israel Weighs Crypto, Blockchain to Counter Potential International Sanctions - bloomingbit

In an October 23 interview with Israel's Channel 10, Netanyahu described blockchain as "an alternative to sanctions," suggesting its use as a national strategic tool. This announcement follows recent measures by 12 Western countries imposing sanctions on products tied to Israeli settlements, citing attacks by Jewish settlers on Palestinians and settlement expansion in the West Bank.

Central Bank Opposition

The Bank of Israel has expressed strong opposition to Netanyahu's proposal. In a statement, the central bank asserted that cryptocurrencies cannot effectively serve as a means of evading international financial sanctions, undermining the prime minister's strategy.

Expert Analysis

Industry experts agree that blockchain technology faces significant limitations in this context. Israeli journalist Nadav Eyal noted that while crypto could facilitate fund transfers without traditional banking networks, it cannot replace bank credit or international capital markets.

Political Response

The proposal has drawn political criticism ahead of Israel's general election on October 27. Gadi Eisenkot, leader of the Yashar party, dismissed Netanyahu's plan as "BibiCoin," calling it "a threat to national security." The debate continues as Israel considers its options amid growing international pressure.