The Bank of Israel pushed back against Prime Minister Benjamin Netanyahu’s proposal to consider cryptocurrencies as a defense against possible international financial sanctions, urging the government to preserve economic ties with its major trading partners.
According to a report by Wu Blockchain citing the Financial Times, the bank said in a statement on October 24 that cryptocurrencies could not be a tool for circumventing sanctions. The statement marked an explicit objection from the central bank to Netanyahu’s search for an alternative financial system.
Netanyahu called for a plan; central bank pointed to relationships
In a televised interview on October 23, Netanyahu warned that Israel could face international banking sanctions. The prime minister said he had asked for plans for alternative financial systems, including blockchain and cryptocurrencies.
Following the previously announced request for plans, the central bank proposed a different path: preserving the government’s economic ties with major trading partners and preventing new restrictions.
In contrast to the prime minister’s search for a technology-based alternative, the bank’s approach emphasizes maintaining existing financial and trade ties.
Not investment advice.