"Cryptocurrencies cannot serve as a means to circumvent sanctions," the Bank of Israel stated this evening in response to comments made yesterday by Prime Minister Benjamin Netanyahu. This is an extraordinary response from the central bank, effectively contradicting the prime minister’s suggestion that blockchain technology could be utilized to cope with economic sanctions athat could paralyze Israel's banking system.
"Of course I’m concerned," Netanyahu replied yesterday in an interview with Channel 10 host Roi Katz, when asked about the fear of Israel facing economic isolation and harsher measures. "One must understand that banking sanctions could be imposed. You need to prepare an alternative economic framework to bypass them."
When Katz asked if blockchain was the planned alternative, the prime minister responded: "One of them, certainly. And I have already requested that a plan for this should be prepared."
The Bank of Israel stated this evening: "The right course for the Israeli economy is to maintain economic relations with our primary trading partners and to focus on preventing sanctions and their negative impact on the economy. This is the responsibility of the political leadership, and it should act upon it."
In an interview on Channel 14 this evening, Netanyahu did not retract the crypto plan. "We have other means; crypto is one of them-it is not the sole method, and it is not certain that it will actually be used.
"I hear the objections and I take them into account. And, by the way, I have consistently received advice from all kinds of sources, including the Bank of Israel. I thank the Bank of Israel for their advice, but I do what I think is right-and my long-term track record shows that I have led the State of Israel to unprecedented economic prosperity."
Published by Globes, Israel business news - en.globes.co.il - on October 24, 2026.
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