Netanyahu Floats Blockchain to Counter Potential Financial Sanctions

Ahead of Israel’s Oct. 27 elections, Prime Minister Benjamin Netanyahu said the country is exploring blockchain technology and cryptocurrencies as a way to limit the economic impact of potential international financial sanctions. Speaking to Israel’s Channel 10 economic network, Netanyahu called blockchain “an alternative to sanctions” and described it as a national strategic tool.

Netanyahu’s comments came as a dozen Western countries announced sanctions on goods from Israeli settlements in the West Bank, citing settler attacks on Palestinians and increased settlement construction approved by his right-wing government. Economists and industry figures previously told The Times of Israel that the measures could eventually extend to Israel proper.

The proposal quickly drew opposition from politicians and the Bank of Israel. Gadi Eisenkot, leader of the Yashar party, wrote on X that the “BibiCoin vision is a threat to national security,” referencing Netanyahu’s nickname, Bibi. The central bank also rejected the idea, stating that cryptocurrencies cannot be used as a route for bypassing sanctions.

The debate continued at an anti-government rally in Tel Aviv, where demonstrators criticized the plan and media commentators called for greater scrutiny of cryptocurrency’s role in moving value outside traditional financial channels. Netanyahu’s remarks nevertheless mark a notable shift in Israel’s approach to crypto, positioning blockchain not merely as an investment opportunity but as a potential component of the country’s economic defense strategy.