Bank of Israel Rejects Netanyahu’s Crypto Sanctions Workaround
The Bank of Israel rejects crypto as a sanctions workaround. Netanyahu says it remains one option, but acknowledges that it may never be used.
Key Notes
- The Bank of Israel says cryptocurrency cannot serve as a route around sanctions.
- Netanyahu says crypto is one possible tool and may not be used.
- No blockchain, token or implementation timetable has been announced.
The Bank of Israel has rejected Prime Minister Benjamin Netanyahu’s suggestion that cryptocurrency could help the country get around potential banking sanctions, urging the government to protect trade relationships and prevent restrictions instead.
Netanyahu defended considering the technology, but said it was only one possible tool and might never be used. The exchange followed his October 23 interview with Channel 10, in which he said he had requested preparations for an alternative economic system.
View Channel 10’s report of the central bank’s response
— Channel 10 (@tv10israel) October 24, 2026
Central Bank Urges Prevention, Not Workarounds
Cryptocurrencies “cannot be used as a route for bypassing sanctions,” the central bank said in a statement on October 24, according to reporting by The Times of Israel.
The bank argued that Israel’s economic interests would be better served by maintaining relationships with its main trading partners and limiting the risk of sanctions and their economic effects. It placed responsibility for that effort with the political leadership.
The disagreement concerns how Israel should prepare for possible restrictions on its banks. It is not an announcement that the country has already been disconnected from the international banking system, nor a central-bank decision to introduce a new cryptocurrency.
Netanyahu Keeps Crypto Among His Options
In his earlier Channel 10 interview with Roi Katz, Netanyahu acknowledged the risk of banking sanctions and said he had asked for a plan involving alternatives, including blockchain. The broadcaster’s original post presented blockchain as one possible response, rather than the sole solution.
Responding in an October 24 interview with Channel 14, Netanyahu said he heard the objections and would take them into account, according to the broadcaster’s own account. He nevertheless maintained that he would exercise his own judgment.
Crypto was one of several means under consideration, and it was “not certain that it will actually be used,” he said in the English translation published by Globes. He thanked the central bank for its advice while defending his economic record as having brought Israel unprecedented prosperity.
No Network or Launch Date Announced
The accounts of the interviews identify no chosen blockchain, token, implementation timetable or published technical design. Netanyahu’s statement that he requested a plan should therefore be distinguished from an approved or operational payments system.
The Times of Israel also reported criticism from opposition leaders, who warned that preparing for financial isolation could threaten investment and business relationships.
Sanctions checks are also being built into commercial blockchain payment services. CoinScreamer’s earlier coverage examined Mastercard’s new stablecoin screening tool, designed to help institutions assess fraud and restricted-party exposure before completing payments.
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