Israeli Regime’s Sanctions Fears Deepen As Netanyahu Faces Backlash over Crypto Plan

Netanyahu is facing mounting criticism from economists, political rivals and Israel’s central bank after proposing cryptocurrency as a possible means of circumventing international sanctions, as growing diplomatic pressure over the Israeli regime’s policies threatens its economic ties with traditional allies.

In an interview with Israel’s Channel 10 on Friday, Netanyahu said he was preparing for a scenario in which broader sanctions were imposed on Israel, raising concerns about the economic consequences of its increasingly strained international relations.

Last month, Britain, France and Canada announced plans to block imports from Israeli settlements in the occupied West Bank, marking another step against the Israeli regime’s settlement policy and underscoring its growing diplomatic isolation.

“There could be sanctions, and sanctions on banks so you need to set up a bypass economy,” Netanyahu said. “You know, there are currencies that can bypass (sanctions). We are also working on that.”

Asked whether he was referring to cryptocurrency, Netanyahu replied: “Very true, very true,” adding that blockchain technology was another possibility.

The proposal drew an unusually sharp rebuke from the Bank of Israel, which said cryptocurrencies could not provide a reliable route around sanctions and urged political leaders to focus on preventing measures that could further damage the economy.