Plan commissioned: Concern about banking sanctions - Netanyahu is considering cryptocurrencies

According to Prime Minister Netanyahu, Israel must prepare for an economic system in which financial transactions are bypassed the traditional banking system. He mentions blockchain technology as an option. But according to a report, the move poses significant risks.

Israeli Prime Minister Benjamin Netanyahu says he is preparing the country for possible international banking sanctions and is considering the use of cryptocurrencies. Netanyahu told Israeli broadcaster Channel 10 on Friday that he had commissioned a corresponding plan. Israel must prepare for an economic system in which financial transactions are bypassed the traditional banking system. He mentioned blockchain technology as one option.

According to Western governments, Israel is coming under pressure primarily because of its occupation and settlement policies in the West Bank and its actions in the Gaza Strip. Several states imposed sanctions on Israeli settlers, organizations and individual government members. They also decided on measures against trade with Israeli settlements. However, complete restrictions on the Israeli banking system have not yet been imposed.

Blockchain technology enables financial transactions to be processed directly with digital money without the need for commercial banks as an intermediary. Countries such as Iran, North Korea, Venezuela and Russia are using digital assets to mitigate the effects of international economic sanctions, according to financial regulators.

According to the Israeli daily Haaretz, exclusion from the global financial system poses significant risks for the country's economy. The paper points out that the Israeli economy is heavily dependent on global trade and investment. It is based on a high-tech sector that conducts business with the rest of the world through a stable, functioning banking system.