Netanyahu Orders Blockchain Plan to Bypass Sanctions — SkimNews

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- Netanyahu said he has asked for a plan to use blockchain to circumvent possible banking sanctions, emphasizing the need to prepare for a future without U.S. defense funding.
- Netanyahu stated that U.S. military aid to Israel will end 'sooner or later,' with the current $3.8 billion-a-year agreement expiring in September 2028, and urged economic self-reliance.
- Elliptic reported that Russia’s ruble-pegged stablecoin A7A5 moved $102 billion in its first year before sanctions and a major exchange hack slashed its daily volume by 96%.
- Bank Leumi, Israel’s largest bank, plans to offer Bitcoin trading in early 2027 through Galaxy Digital, pending approval from the Bank of Israel.
- Netanyahu compared Israel’s potential crypto strategy to actions by Venezuela and Russia, though he did not name specific currencies or networks under consideration.
- Defense Minister Israel Katz sanctioned 37 crypto wallets linked to Iran’s Revolutionary Guards, holding over 24 million shekels, underscoring Israel’s active monitoring of crypto-based terror financing.
Why it matters: If Israel pursues a blockchain-based alternative to traditional banking, it would mark a strategic shift toward financial resilience amid geopolitical risk, but faces hurdles given crypto's traceability and the precedent of sanctions crippling similar efforts in Russia and Venezuela. The $3.8 billion annual U.S. aid cliff in 2028 adds urgency.
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