Original Coverage & Source Attribution: www.yahoo.com
Over 100 economic experts and former senior Israeli officials have expressed “grave concern and anxiety” over remarks by Prime Minister Benjamin Netanyahu that Israel could use cryptocurrencies to evade possible banking sanctions, in a statement cited by Israeli media on Sunday.
In a strongly worded letter, the signatories warn that comprehensive sanctions would cause “enormous and irreversible damage” to the Israeli economy. Among those who signed the letter are Joel Mokyr, who was awarded the 2025 Nobel Prize in Economic Sciences, and Aaron Ciechanover, a Nobel laureate in chemistry.
According to the reports, the signatories accuse Netanyahu of failing to grasp the seriousness of the threat and criticize his proposal as a solution more commonly associated with criminal organizations.
Israel is facing international pressure primarily over its policies in the occupied West Bank and its military operations in the Gaza Strip. Several countries have imposed sanctions on settlers, organizations and individual members of the government, but the country’s banking system has not yet been targeted.
On Friday, Netanyahu told Israeli broadcaster Channel 10 that he had commissioned a plan to prepare Israel for possible international sanctions against its banking system.
He said he was also considering the use of cryptocurrencies and blockchain technology to carry out financial transactions outside the restrictions of the traditional banking system.
Israel’s central bank has also rejected the proposal. Cryptocurrencies must not be used to circumvent sanctions, it said. Instead, the political leadership must ensure that economic ties with Israel’s most important trading partners are maintained.
The Israeli economy is heavily dependent on foreign trade and investment. The high-tech sector, in particular, relies on functioning international banking connections.
