Prime Minister Benjamin Netanyahu has requested a plan to utilize cryptocurrency and blockchain technology to mitigate the impact of potential banking sanctions on Israel. The initiative aims to establish an alternative financial framework to ensure economic continuity if international support for the country's defense budget is restricted.
Netanyahu did not specify the timeline for the project or the specific digital assets to be used. The proposal draws parallels to strategies previously employed by countries such as Venezuela, Iran, Russia, and North Korea, which have utilized blockchain to bypass international financial systems like SWIFT.
The move comes amid growing international pressure, including recent trade restrictions on Israeli settlement goods by the United Kingdom and other nations. Concurrently, Bank Leumi has announced plans to offer Bitcoin trading services by early 2027, subject to regulatory approval from the Bank of Israel.
Experts note that blockchain transactions are generally transparent and traceable. Israel has previously demonstrated the ability to track and sanction crypto assets, with the Defense Ministry ordering the freezing of 37 wallets containing over 24 million shekels linked to groups identified as terror financiers.
