Benjamin Netanyahu’s proposal to explore the use of cryptocurrencies as a means of circumventing potential international economic sanctions sparked strong reactions in Israel, with 109 leading economists, business leaders, and former government officials—including two Nobel laureates—warning of catastrophic consequences for the Israeli economy.
In a joint letter released today, Sunday, the signatories describe the proposal as a “bizarre idea used by criminal organizations,” expressing deep concern about the risk of Israel’s international economic isolation.
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Among the signatories are Joel Mokyr, winner of the 2025 Nobel Prize in Economics; Aaron Ciechanover, Nobel laureate in Chemistry; former Bank of Israel Governor Jacob Frenkel, and four former directors-general of the Ministry of Finance.
The signatories warn that potential widespread banking sanctions could paralyze international transactions, trigger a massive flight of capital, and particularly harm the technology sector, which is a key pillar of the Israeli economy.
According to the letter, the repercussions could extend to citizens’ daily lives, causing problems with credit card use, online shopping, and the import of medicines and medical equipment.
The Bank of Israel also weighed in, emphasizing that cryptocurrencies cannot be used as a means to circumvent international sanctions and that the priority must be to maintain economic relations with the country’s key trading partners.
Netanyahu had revealed on Friday that he had requested the drafting of a relevant plan, later clarifying that cryptocurrencies are only one of the options under consideration and that their use is not certain.
Responding to criticism from the Central Bank, he stated that he listens to advice but ultimately acts according to his own judgment.
Source: CNA
