More than 100 \u200ceconomists express alarm, say proposal will lead to higher unemployment, fall in foreign investment <\/p>\n
Israel\u2019s Prime Minister Benjamin Netanyahu attends a ceremony commemorating Israel\u2019s Remembrance Day for fallen soldiers, or Yom HaZikaron, at the Military Cemetery on Mount Herzl in Jerusalem April 21, 2026.PHOTO:REUTERS <\/p>\n
Israel’s Prime Minister Benjamin Netanyahu, who faces re-election<\/a> this week, is drawing criticism from economists and political rivals \u200bafter suggesting Israel could use cryptocurrency to help shield its economy from potential international sanctions.<\/p>\n In an interview<\/a> \u200cwith Israel’s Channel 10 <\/em>on Friday, Netanyahu said he was preparing for a scenario in which broader sanctions were imposed on Israel.<\/p>\n Last month, Britain, France and Canada said they would block imports<\/a> from Israeli settlements in the West Bank in what was the latest in a series of actions \u200btargeting Israel’s settlement policy, underscoring its growing diplomatic isolation among some of its traditional allies.<\/p>\n Read<\/strong>: UK, France and Canada sanction Israeli West Bank settlements, in support for two-state solution<\/a><\/p>\n “There could be sanctions, \u200band sanctions on banks, so you need to set up a bypass economy,” Netanyahu said. “You know, \u2060there are currencies that can bypass (sanctions). We are also working on that.”<\/p>\n Netanyahu:<\/p>\n They have been trying to impose sanctions on us for three years, and we have blocked every single attempt.<\/p>\n We have done so through countermeasures, for example against Britain, when we closed its consulate in Jerusalem, and by bringing back countries that had left\u2026 pic.twitter.com\/xFsVDnr7b3<\/a><\/p>\n \u2014 Clash Report (@clashreport) October 24, 2026<\/a><\/p><\/blockquote>\n<\/div>\n Asked whether he was referring to cryptocurrency, Netanyahu replied: “Very \u200btrue, very true,” adding that blockchain technology was another possibility.<\/p>\n The comments drew a rare rebuke by the Bank of Israel, which said \u200bcryptocurrencies cannot serve as a route to bypass sanctions and that political leaders should focus on policy that would render such measures unnecessary.<\/p>\n “The right course for Israel’s economy is to preserve our economic relations with our main trading partners, and to focus on preventing sanctions and \u200btheir negative impact on the economy,” it said.<\/p>\n Netanyahu on Sunday continued to defend his record, urging voters to back him and \u200bsaying he and US President Donald Trump had two years left to work together to topple Iran’s rulers<\/a>.<\/p>\n Plan draws criticism<\/strong><\/p>\n On Sunday, more than 100 \u200ceconomists, including \u2060former Bank of Israel officials, ex-central bank governor Jacob Frenkel and several Nobel laureates, signed a letter expressing alarm over Netanyahu’s proposal. They said it would lead to higher unemployment, a fall in foreign investment and the collapse of Israel’s economic standing in the world.<\/p>\n “As we have seen in countries that have suffered similar sanctions, such as South Africa, Iran, and Russia, the \u200bliving standards of Israeli citizens \u200bwould plummet dramatically, and \u2060the state’s ability to finance its security and defend itself against its enemies would be severely damaged,” the letter read.<\/p>\n “Netanyahu is knowingly leading the State of Israel toward boycott and international economic \u200bisolation, and all he has to offer the Israeli economy is a puzzling solution, one \u200baccepted in criminal \u2060organisations, that will not help in the slightest.”<\/p>\n Netanyahu’s main rival in Tuesday’s election, Gadi Eisenkot<\/a>, called the crypto plan “madness” and said he feared that the “BibiCoin policy” would drive companies abroad and undermine national security.<\/p>\n\n