Netanyahu suggests cryptocurrency could bypass potential sanctions

Summarised from 2 outlets · Updated 25 Oct, 14:31 · Archive

Prime Minister Benjamin Netanyahu has suggested Israel could use cryptocurrency to shield its economy from potential international sanctions.

Prime Minister Benjamin Netanyahu suggested in a Friday interview with Israel's Channel 10 that Israel could use cryptocurrency to help shield its economy from potential international sanctions. He said that if broader sanctions were imposed, particularly on banks, Israel would need to 'set up a bypass economy' using 'currencies that can bypass sanctions'. When asked if he was referring to cryptocurrency, Netanyahu confirmed this and mentioned blockchain technology as another possibility.

The comments drew a rare rebuke from the Bank of Israel, which stated that cryptocurrencies cannot serve as a route to bypass sanctions. The bank argued that political leaders should instead focus on policy that would render such measures unnecessary, adding that 'the right course for Israel's economy is to preserve our economic relations with our main trading partners, and to focus on preventing sanctions'.

More than 100 economists signed a letter on Sunday expressing alarm over Netanyahu's proposal. The signatories included former Bank of Israel officials, ex-central bank governor Jacob Frenkel and several Nobel laureates. Netanyahu has faced growing diplomatic isolation, with Britain, France and Canada recently blocking imports from Israeli settlements in the West Bank.

How it is being reported

• Netanyahu rebuked over crypto sanction bypass planPrime Minister Benjamin Netanyahu has suggested Israel could use cryptocurrency to help shield its economy from potential international sanctions.The West Australian · 25 Oct, 14:01
• Netanyahu rebuked over crypto sanction bypass planPrime Minister Benjamin Netanyahu has suggested Israel could use cryptocurrency to help shield its economy from potential international sanctions.Perth Now · 25 Oct, 14:01

In this story: Benjamin Netanyahu · Israel · Bank of Israel · Jacob Frenkel · Britain · France · Canada · Donald Trump

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