Bank of Israel Rejects Netanyahu's Crypto Plan to Dodge Sanctions

The Bank of Israel said Saturday that cryptocurrencies "cannot be used as a route for bypassing sanctions," pushing back on an idea Prime Minister Benjamin Netanyahu floated on Oct. 23.

On Friday, Netanyahu told an Israeli economic TV channel that the country could face banking sanctions and that crypto and blockchain were options he had asked advisers to plan for. In its statement, reported by The Times of Israel and Ynetnews, the central bank said the better course was keeping ties with Israel's main trading partners and working to prevent sanctions in the first place. It added that the issue belongs to the political leadership.

Netanyahu did not back down. "I hear the resistance; I am taking it into account," he told Channel 14, according to The Times of Israel. "I thank the Bank of Israel for the advice. I listen, but I do what I think [is best]."

Who else weighed in

Ynetnews reported that officials in Israel's economic ministries said they knew of no such plan. Former Bank of Israel banking supervisor Yair Avidan told the outlet that putting a payment on a blockchain does not remove legal obligations, since banks and payment firms still have to comply with sanctions.

Opposition leaders also criticized the idea. Avigdor Liberman wrote on X that blockchain transactions are traceable and that authorities already block wallets tied to sanctioned parties.

Public rebukes of a sitting prime minister by the central bank are rare.