Bank of Israel rejects Netanyahu’s crypto proposal
The central bank says cryptocurrencies cannot be used to circumvent sanctions.
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The Bank of Israel has distanced itself from a proposal by Prime Minister Benjamin Netanyahu to investigate blockchain and cryptocurrencies as an alternative if Israel faces banking sanctions. Netanyahu subsequently said he would take the advice into account, but would make the final decision himself.
Netanyahu said in a television interview that Israel must prepare for possible international restrictions on the banking system. Asked whether blockchain could form part of such an alternative, he answered in the affirmative. He did not announce a concrete plan, timetable or specific currency.
The Bank of Israel responded on Saturday that cryptocurrencies cannot be used to circumvent sanctions. According to the central bank, the political leadership should focus on preventing sanctions and maintaining economic relations with important trading partners.
The central bank is thus contradicting the idea that cryptocurrencies could offer a way out in the event of banking sanctions. Netanyahu is sticking to the idea that digital technology could be one of several options, but reportedly also said that the instrument might never be used.
The discussion is taking place shortly before the Israeli elections. Opponents warn that publicly discussing a plan to circumvent sanctions could damage the confidence of trading partners and financial institutions. The government has not said that Israel is actually subject to banking sanctions.
Cryptocurrencies do not automatically replace the conventional financial system. International transactions often run through banks, trading platforms and other institutions that must themselves apply sanctions rules. Blockchain transactions are not necessarily anonymous either, meaning the political proposal is not the same as a workable economic route.
For European companies, the possible political significance is particularly important. If Israeli banks or companies were to face heavier restrictions, payments, insurance, investment and trade relations could be affected. However, as long as there is no sanctions decision or fully developed plan, this remains a political signal rather than a changed market situation.
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One story, several perspectives
What is established
- Netanyahu mentioned blockchain and cryptocurrencies as possible alternatives in the event of international banking sanctions.
- The Bank of Israel said that crypto cannot circumvent sanctions.
- There is no fully developed plan or announced sanctions regime.
- The discussion is taking place shortly before the Israeli elections.
Left
Arguments The proposal can be seen as a distraction from the political choices leading to international pressure. Economic stability requires rebuilding trust and complying with international rules, not finding a way around them.
Values The international rule of law, social stability and public accountability.
Consequences Diplomatic de-escalation could limit economic damage, but domestically it could be portrayed as giving in to foreign pressure.
Centre
Arguments A government may investigate scenarios for financial continuity, but should give considerable weight to the central bank’s advice, sanctions rules and practical feasibility. A plan without transparent scrutiny could itself cause damage.
Values Financial stability, expert oversight and risk management.
Consequences Preparation could expose vulnerabilities, but public speculation could unnecessarily unsettle markets and trading relationships.
Right
Arguments Israel must be prepared for economic pressure and must not become entirely dependent on foreign financial infrastructure. Digital tools could form part of national resilience, provided the state itself retains control.
Values National sovereignty, economic independence and security.
Consequences Diversification could increase resilience, but confrontation with financial partners could instead harm investment and trade.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
Netanyahu’s statements and those of the Bank of Israel have been confirmed by multiple public sources. The article clearly distinguishes between a political proposal and sanctions actually in force.
- confirmed Netanyahu said that blockchain or cryptocurrencies could be an alternative in the event of possible banking sanctions. — Reuters and The Block describe his television interview. source
- confirmed The Bank of Israel said that crypto cannot circumvent sanctions. — Globes published the central bank’s response. source
- confirmed No concrete plan or timetable has been made public. — The sources consulted mention no currency, network or implementation date. source
- incorrect Israel is actually subject to banking sanctions. — The sources refer to possible future sanctions; the text therefore explicitly says this has not been confirmed. source
1 correction(s) applied
- Was: Israel may already be subject to banking sanctions.Now: The government has not said that Israel is actually subject to banking sanctions; this concerns possible future restrictions. (The sources describe a warning and preparation, not a sanctions decision currently in force.)
Editor's note
It is certain that Netanyahu mentioned a possible blockchain alternative and that the central bank publicly rejected it. There is no fully developed plan and no confirmation that banking sanctions are in force.Sources
- BoI slams Netanyahu’s crypto plan for evading sanctions — Globes
- Netanyahu explores crypto to bypass potential sanctions — Reuters via Investing.com
- Netanyahu seeking blockchain plan to prepare for possible sanctions — The Block
More on this in Dutch media
- NOS — „israël cryptovaluta”
- Het Parool — „israël cryptovaluta”
- de Volkskrant — „israël cryptovaluta”