Netanyahu proposes blockchain to bypass potential international banking sanctions

Israeli Prime Minister Benjamin Netanyahu has announced plans to develop an alternative economic framework, specifically utilizing blockchain technology, to mitigate the risk of potential international banking sanctions. Speaking on Channel 10 ahead of upcoming elections, Netanyahu acknowledged significant pressure from the United States and other international partners. He confirmed that he has formally requested the development of this plan to ensure the country’s financial operations can function independently of conventional banking intermediaries if needed.

The proposal has sparked intense backlash within Israel. On Sunday, a group of 109 prominent figures—including Nobel laureates Joel Mokyr and Aaron Ciechanover, former Bank of Israel Governor Jacob Frenkel, and four former Finance Ministry directors—issued a joint letter condemning the move. They warned that such a strategy could isolate Israel internationally, paralyze global transactions, and trigger a massive flight of investment, particularly harming the nation's critical technology sector. Critics described the plan as an approach typically associated with criminal organizations. The initiative comes against the backdrop of existing sanctions from the UK and other nations targeting products from settlements in the occupied West Bank, prompted by settler violence and ongoing settlement construction.