Economists: Sanctions will cause Israel huge, irreparable damage

Amid fears of the expansion of international sanctions against Israel, Prime Minister Benjamin Netanyahu warned on Friday that "we must organize an 'alternative' economy." He added that blockchain was one of the options being considered, and that he had already ordered that a plan for it should be drawn up. The Bank of Israel issued an unusual response the following day, explicitly contradicting his suggestion that blockchain technology could be used to circumvent economic sanctions, stating "cryptocurrencies cannot serve as a channel to bypass sanctions."

A position paper was published today, signed by 109 economists, business leaders, and former senior public officials, who warn that "economic sanctions on Israel will cause huge, irreparable damage."

"We express deep anxiety and concern over Prime Minister Benjamin Netanyahu’s remarks about the possibility of international sanctions being imposed on the Israeli banking system, and his strange suggestion to prepare for the use of cryptocurrencies in order to circumvent them," the paper states.

"Beyond the immense damage at the macro level, Israeli citizens will be directly and daily affected: Israelis will be unable to use credit cards; international e-commerce sites (such as Amazon and AliExpress) will become inaccessible to customers from Israel; and foreign workers will leave the country en masse, as they will be unable to remit funds to their families. The healthcare system will be unable to procure medical equipment and medications. Economic sanctions would completely dismantle the model that enables Israel to exist as a modern, advanced economy.

"Netanyahu is knowingly steering the State of Israel toward an international boycott and economic isolation, and all he has to offer the Israeli economy is a bizarre solution typically found in criminal organizations that which will be of absolutely no use."

Among the signatories are Nobel laureates, recipients of the Israel Prize in Economics, a former governor of the Bank of Israel, and former senior officials at the Ministry of Finance and the Bank of Israel: Joel Mokyr, Jacob Frenkel, Leo Leiderman, Zvi Eckstein, Yair Avidan, Rony Hizkiyahu, Udi Nisan, Nadine Baudot-Trajtenberg, Avia Spivak, Avi Ben-Bassat, David Brodet, Yishay Yafeh, Yarom Ariav, Gigi Levy-Weiss, Alon Nisim Cohen (CyberArk), Chaim Katzman, Eitan Bar-Zeev, Roy Vermus, Omer Moav, Avi Hasson, Ori Hadomi, Moshe Zviran, Yael Steinhart, Orly Sade, Itai Ater, Avishay Braverman, Efraim Sadka, David Boaz, Aaron Ciechanover, David Harel, Asher Tishler, Dani Tsiddon, Eran Yashiv, Yossi Spiegel, Haim Shani, Dov Moran, Nir Dagan, Dan Galai, Dan Ben-David, Sergiu Hart.

Published by Globes, Israel business news - en.globes.co.il - on October 25, 2026.

Economists: Sanctions will cause Israel huge, irreparable damage

109 economists, businesspeople, and former officials have signed a statement calling the prime minister's cryptocurrency plan "bizarre" and "absolutely no use."