Israel’s Netanyahu defends crypto sanctions plan – ‘I do what I think is right’
Israel’s sanctions debate puts crypto’s promise of financial independence under a national stress test.
Benjamin Netanyahu, Israel’s prime minister, has defended his crypto plan as an alternative to evade future sanctions against the country.
According to a Financial Times report, the central bank, the Bank of Israel, opposed the plan, noting that –
Cryptocurrency cannot serve as a means to circumvent sanctions imposed on Israel. The right course of action for the Israeli economy is to preserve economic relations with our primary trading partners and to focus on preventing sanctions.
The central bank warned of the negative impact of sanctions, a stance echoed by opposition politicians who stressed that Netanyahu’s crypto plan could turn Israel into an economic pariah.
Despite the opposition, Netanyahu did not retract his comments. In a separate interview with Israel’s Channel 14 on the 24th of October, the PM said,
We have other means; crypto is one of them, it is not the sole method. I hear the objections, and I take them into account.
He added,
I thank the Bank of Israel for their advice, but I do what I think is right and my long-term track record shows that I have led the State of Israel to unprecedented economic prosperity.
But what are Netanyahu’s concerns that make him believe crypto can be one of the viable solutions?
Why is Netanyahu considering crypto?
According to an FT report, Israel has been having strained relations with traditional allies, including the UK, France, Canada, Spain, and the Netherlands.
These countries have imposed or pledged sanctions against Israel for its expansion in Palestinian territory and alleged blocking of humanitarian aid. And the sanctions could increase in the future.
In an interview with Israel’s Channel 10 on Friday, the 23rd of October, Netanyahu echoed similar concerns, proposing crypto and blockchain as alternatives.
One must understand that banking sanctions could be imposed. You need to prepare an alternative economic framework to bypass them.
He added that he has requested that the crypto plan be prepared, triggering the debate and rebuke. Whether his crypto stance will affect his re-election bid remains unclear.
Crypto’s geopolitical role
Netanyahu’s plan mirrors Russia and Iran’s crypto playbook. The two countries embraced crypto for international trades, bypassing restrictions placed across SWIFT and other financial systems by the West.
In fact, Russia formalized its crypto regime to advance its international trade agenda.
However, Iran’s crypto plan has been massively derailed after the U.S. froze over $1B of funds. The U.S. has also sanctioned nearly all crypto networks funneling the flows in an attempt to subdue Iran to U.S.-Israel demands.
Interestingly, Israel even hacked some of Iran’s crypto platforms as part of its offensive campaign, underscoring the industry’s role in geopolitics.
That said, crypto activity in the Middle East and North Africa (MENA) region shrank by 1.4% in 2026. However, P2P transactions rebounded slightly by 1.1%, with major spikes during geopolitical events.
Final Summary
- Netanyahu maintained his crypto plan for Israel amid sanction fears.
- Bank of Israel and opposition figures slammed the crypto plan.
