'Deep concern': Central bank and experts rip apart Netanyahu's crypto push

In the event of international sanctions, Israel's prime minister wants to build an "alternative economy", including with cryptocurrencies. It's not just the central bank that has the hairs on its neck standing up. She calls for “concentration on preventing sanctions.”

In a rare move, Israel's central bank has criticized Prime Minister Benjamin Netanyahu's statements that the country should use cryptocurrencies to build an "alternative economy" to circumvent sanctions. “Cryptocurrencies cannot be used to circumvent sanctions against Israel,” the central bank said on Saturday evening. Instead, business should preserve its relationships with its trading partners and focus on preventing sanctions. "This matter is the responsibility of our political leadership and it is appropriate to take steps to take this forward," it said.

At the same time, more than 100 economic experts and former top officials expressed their "deep concern" about Netanyahu's comments, according to media. In a strongly worded letter, the signatories reportedly warned that comprehensive sanctions would cause "enormous and irreversible damage" to the Israeli economy.

Signatories include Joel Mokyr, winner of the 2025 Nobel Prize in Economic Sciences, and Aaron Ciechanover, Nobel Prize winner in Chemistry. The signatories reportedly accuse Netanyahu of failing to understand the seriousness of the threat and criticize his proposal as a solution more closely associated with criminal organizations.

In a recent interview, Netanyahu acknowledged increasing pressure on Israel from the US as an important ally. There could be “sanctions, including bank sanctions,” he said. You therefore have to build an “alternative economy” to avoid them. According to his own information, the head of government ordered that plans be drawn up to build blockchain technology.

Netanyahu drew criticism from his political opponents with his statements shortly before the upcoming parliamentary elections. They accused him of tacitly admitting that his policies had a negative impact on the country.

Israel is under international pressure over its policies in the occupied West Bank and its actions in the Gaza Strip. Several states have already imposed sanctions on settlers, organizations and individual members of the government. However, there are currently no comprehensive restrictions against the Israeli banking system.

Exclusion from the international financial system could severely impact Israel's economy, which is heavily dependent on foreign trade and investment. The high-tech sector in particular is dependent on functioning international bank connections.