Israeli Prime Minister Benjamin Netanyahu says he has asked for a plan to use blockchain and crypto as a way around possible banking sanctions.
Speaking in an interview with Israel’s Channel 10, Netanyahu was asked whether blockchain could offer a route around sanctions. He said it was “one of the alternatives, certainly,” and that he had “already asked for a plan to be prepared.”
He said Israel should “prepare an alternative economy” and consider currencies that can get around such restrictions, and that he was working on it himself.
What he did not say
Netanyahu did not say who is drafting the plan, which currency or blockchain network it would use, or when it would be ready.
Banking sanctions, in this context, would mean foreign banks refusing to process payments for Israeli banks.
The interview took place four days before Israel’s national election on 27 October.
Why it came up
Netanyahu said he expects US military funding for Israel to end eventually, calling it “only a question of time.” The current $3.8 billion-a-year US arrangement runs until September 2028.
Why crypto is a limited escape route
Blockchains are public and traceable, which limits how well they can be used to avoid sanctions.
Israel itself has used that. On 1 July, Israeli Defence Minister Israel Katz signed sanctions orders against 37 crypto wallets holding more than 24 million shekels, which Israel says belong to Iran’s Revolutionary Guards.
Stablecoin issuers can also freeze funds held in their tokens at the request of authorities.
Crypto in Israel
Separately, Bank Leumi, one of Israel’s largest banks, plans to offer Bitcoin trading from early 2027 through Galaxy Digital, subject to approval from the Bank of Israel.
What happens next
The election on 27 October will decide who leads the government that would take any plan forward. No details had been published at the time of writing.
