Prime Minister Benjamin Netanyahu stated that Israel might utilize blockchain technology and cryptocurrencies to mitigate the impact of potential international financial sanctions. This proposal was presented during an interview with the local Channel 10 economic network on Friday, ahead of the elections scheduled for October 27.
Netanyahu characterized blockchain as a national strategic tool for economic defense. This marks a shift in the government's perspective on the digital currency industry, moving from viewing it as an investment event to integrating it into the country's economic strategy.
The proposal faced immediate criticism from political opponents and the Bank of Israel. Gadi Eisenkot, leader of the Yashar party, described the idea as a threat to national security. The Bank of Israel officially rejected the proposition, asserting that cryptocurrencies cannot serve as a viable path for bypassing international sanctions.
Industry experts and analysts also questioned the feasibility of the plan. Ben Samocha, founder of CryptoJungle, noted that blockchain investigation allows for the tracking and freezing of illicit funds, citing US Treasury actions against Iran as a precedent. Columnist Nadav Eyal emphasized that digital currencies cannot replace national financial systems, credit lines, or international capital markets.
