109 Israeli Economists Reject Netanyahu's Proposal to Evade Sanctions via Cryptocurrencies

One hundred nine Israeli economists, including former officials at the Bank of Israel central bank and senior civil service figures, signed an open letter rejecting Prime Minister Benjamin Netanyahu's proposal to use cryptocurrencies and blockchain technology to circumvent Western sanctions, according to Israeli Channel 12.

The signatories described the proposal as 'astonishing' and leading to 'profound concern and apprehension', warning that Netanyahu is knowingly steering Israel toward international boycotts and isolation that would inflict 'irreparable damage'. The letter noted that any sanctions targeting the Israeli banking system would paralyze companies, exporters, and investors, and would strike the technology sector a fatal blow.

The letter detailed concrete consequences: halting use of credit cards, blocking international e-commerce platforms, foreign workers' inability to transfer funds and subsequent departure from the country, as well as bottlenecks in medical equipment and drug supply. The signatories cited the experiences of South Africa, Iran, and Russia as evidence that sanctions reduce citizens' living standards and weaken the state's capacity to finance defense spending.

Bank of Israel had previously rejected the proposal, calling instead for 'preventing sanctions from being imposed' rather than evading them. Netanyahu's proposal came in remarks to Israeli Channel 10, where he commented on a decision by twelve Western countries to impose a trade ban on Israeli settlements in occupied Palestinian territory, stressing the need to shift toward an alternative economic model based on blockchain technology.