Israeli economists oppose Netanyahu's proposal to use cryptocurrencies to bypass sanctions

According to the news of Channel 12 television broadcasting in Israel, 109 economists, including former Bank of Israel managers and senior figures who worked in the public sector, published a joint letter regarding Netanyahu's statements.

Describing Netanyahu's pointing out the use of cryptocurrency to bypass sanctions on the banking system as "surprising", the letter warned that Netanyahu knowingly dragged the country into international boycott and isolation, and that such isolation would cause "irreparable damage".

The letter stated that Netanyahu's proposal to use cryptocurrency to circumvent sanctions caused "deep concern and anxiety".

Warning that sanctions against the Israeli banking system will make companies, exporters, investors and, above all, the technology sector unable to operate, the following statements were included in the letter:

"Unemployment will increase rapidly, foreign investments will be cut completely and the country's global economic position will be severely hit. This situation will directly affect the daily lives of citizens. The use of credit cards will stop, access to international e-commerce platforms will be blocked and foreign employees will have to leave because they cannot transfer money to their countries. The health system will experience great difficulties in the supply of medical equipment and medicines."

Citing countries subject to sanctions such as South Africa, Iran and Russia as examples, the statement reminded that these restrictions reduce the living standards of the people and weaken the state's ability to finance defense expenditures.

Yesterday, the Bank of Israel rejected Prime Minister Benjamin Netanyahu's proposal to use blockchain technology and cryptocurrencies to circumvent the sanctions imposed by Western countries, saying "prevent the imposition of sanctions".

Speaking to Channel 10 television, Netanyahu made evaluations about the decision of 12 Western countries to ban trade with illegal Israeli settlements established by usurping occupied Palestinian lands, and argued that they should switch to an alternative economic model to overcome the sanctions.

Netanyahu claimed that blockchain technology could be used to bypass sanctions.