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Netanyahu says he has ordered a blockchain plan in case Israel's banks face sanctions
Summary
Israeli Prime Minister Benjamin Netanyahu said he has asked for a plan involving blockchain to help Israel prepare for possible economic sanctions, including banking restrictions, in an interview broadcast Friday on Israel's Channel 10, The Block and Decrypt reported.
Asked by interviewer Roy Katz whether blockchain was an alternative for dealing with sanctions, Netanyahu replied, 'One of them, certainly. I have already asked for a plan to be prepared for that,' according to The Block's translation of the Hebrew transcript; Decrypt's rendering of the quotes is worded slightly differently.
Both outlets said Netanyahu did not say who would prepare the plan, which blockchain or currencies it might involve, or when it could be ready.
He also said Israel must prepare for an eventual end to U.S. military aid, saying 'It's only a matter of time,' and for a less favorable U.S. environment after President Donald Trump leaves office.
Updates
- Update, : Update: The Bank of Israel rejected the idea in a statement, saying cryptocurrencies "cannot be used as a route for bypassing sanctions," and Yashar party leader Gadi Eisenkot, one of the candidates in the Oct. 27 election, called the "BibiCoin vision" a threat to national security, Cointelegraph reported.
- Update, : Update: Decrypt reported on Oct. 26 that more than 100 economists, including former Bank of Israel governor Jacob Frenkel, warned of deeper isolation ahead of the Oct. 27 national election, alongside the central bank's rebuke of the plan.
Key facts
- Netanyahu said he had allocated an additional 400 billion shekels, or around $129 billion, to the defense budget over the coming years, The Block reported.
- Decrypt said the interview came days before Israel's election.
- Decrypt noted that Venezuela, Iran, Russia and North Korea have used crypto to move funds around sanctions, and that Russia's ruble-pegged A7A5 token moved about $102 billion in its first year, citing Elliptic.
- Decrypt reported that Israel's largest bank, Bank Leumi, plans to offer Bitcoin trading in early 2027 through Galaxy Digital, pending Bank of Israel approval.
- Ben Samocha, founder of Israeli crypto outlet CryptoJungle, told Cointelegraph that crypto and blockchain are not a tool for bypassing sanctions, pointing to how the U.S. Treasury has tracked and frozen illicit funds tied to Iran.