The institution stressed that instead of seeking alternatives to bypass possible international sanctions against the nation, Israel should focus on preventing these from happening and affecting the country’s economy. Netanyahu said there were other alternatives to crypto to achieve the same objective.
Key Takeaways
- PM Netanyahu proposed using cryptocurrency to bypass potential international economic sanctions.
- The Bank of Israel opposed the idea, urging leaders to focus on preventing sanctions to protect trade.
- Political rivals warned the crypto pivot threatens national security and could cripple tech investments.
Bank of Israel Rejects Netanyahu’s Proposal To Use Crypto To Skirt Sanctions
The Bank of Israel responded to a public proposal from Prime Minister Benjamin Netanyahu, who floated the idea of using cryptocurrency to skirt hypothetical sanctions on the Israeli economy.
In a statement, the institution declared that the right thing for Israel’s economy “is preserving the economic relationships with our principal trade partners and focusing on preventing sanctions and their negative influence on the economy.” Furthermore, the bank assessed that the issue fell “within the responsibilities of the political echelon, and it should act to advance it.”
On Friday, during an interview, Netanyahu said that cryptocurrency might serve as an alternative economic path if Israel is subjected to international economic and banking sanctions derived from the nation’s military deployments.
“We need to understand that there could be banking sanctions. You need to prepare an alternative economic system, and you know what that is, and you know which currencies can bypass this, and I’m working on that as well,” Netanyahu said, pointing to crypto and blockchain technology as tools that can be leveraged to bypass these sanctions.
Netanyahu has been aware of bitcoin and cryptocurrency for a long time. In 2017, the Prime Minister stressed that banks were destined to disappear when asked if individuals should invest in bitcoin.
Gadi Eisenkot, Netanyahu’s main challenger in the upcoming elections, blasted the Prime Minister’s proposal, labeling it as a threat to national security. “After dismantling Israeli society and weakening the IDF, Netanyahu has set his sights on his next target: the long-term destruction of the Israeli economy for generations to come,” he declared.
“How could an Israeli high-tech company with overseas clients receive payments or secure foreign investment? How could Google acquire an Israeli firm if the condition were to bypass international banking systems and pay in cryptocurrency?” Eisenkot concluded.
Netanyahu acknowledged the Bank of Israel’s criticism and acknowledged that besides crypto, other tools were available to achieve the same goal and maintain connection to the global financial system if Israel gets targeted by international sanctions.
“I thank the Bank of Israel for their advice, but I do what I think is right-and my long-term track record shows that I have led the State of Israel to unprecedented economic prosperity,” Netanyahu declared in a recent interview.