Bank of Israel Rejects Netanyahu Crypto Bypass Plan — SkimNews
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- Bank of Israel said in a Saturday statement that cryptocurrencies “cannot serve as a means to circumvent sanctions imposed on Israel,” urging the country to preserve relations with primary trading partners and focus on preventing sanctions.
- Netanyahu said Friday on Channel 10 that he had requested a plan using cryptocurrency and blockchain networks to bypass potential banking sanctions, but did not identify its drafter, currency or network; he later said he would still do what he believed best.
- Jacob Frenkel was among more than 100 economists, including several Nobel laureates, who signed a Sunday letter warning that the proposal would bring higher unemployment and a collapse in foreign investment and would not help “in the slightest.”
- Gadi Eisenkot dismissed the proposal as “madness” and a “BibiCoin policy” that would drive companies abroad, while Yair Lapid compared Netanyahu’s proposed “bypass economy” with those of Iran, Russia and Venezuela.
- Gali Ingber said digital currencies cannot circumvent sanctions because blockchain systems are publicly transparent, register every transfer and allow each transaction to be traced to its origin.
- Israel Katz signed sanctions orders in July on 37 crypto wallets holding more than 24 million shekels that Israel said belonged to Iran’s Revolutionary Guards, showing that Israel already uses blockchain tracing against sanctioned groups.
Why it matters: The dispute places Netanyahu’s plan against the Bank of Israel and more than 100 economists before Tuesday’s election, with opponents warning of higher unemployment and a collapse in foreign investment. Israel’s own action against 37 wallets holding more than 24 million shekels reinforces the transparency problem: cryptocurrency transfers can be traced, not hidden.
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