Bibi and the Blockchain: When a Prime Minister Plans for Sanctions Evasion - Wired Gov
Israeli Prime Minister Benjamin Netanyahu has announced plans to establish a 'bypass economy' using cryptocurrency to potentially evade international sanctions against Israel.
The Israeli leader's remarks came during an election campaign appearance on Channel 10 TV, where he acknowledged the possibility of sanctions being applied against Israel. This follows announcements from the UK and other Western governments in September regarding potential sanctions and trade measures against elements of the Israeli economy related to the occupation of Palestinian Territories.
Sanctions Preparation
Netanyahu specifically stated that 'There could be sanctions, and sanctions on banks, so you need to set up a bypass economy' using currencies including cryptocurrency that can bypass restrictions. He revealed that 'we are also working on that,' indicating active preparation for potential financial isolation.
Economic Concerns
knowingly leading the State of Israel toward boycott and international economic isolation
The Bank of Israel criticized the approach, suggesting Netanyahu should focus on policies that prevent sanctions rather than circumvent them. The central bank emphasized that 'The right course for Israel's economy is to preserve our economic relations with our main trading partners.' An open letter from over 100 economists condemned the plan as a 'puzzling solution' accepted only in criminal organizations that won't help the economy.
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