Netanyahu explores crypto to bypass potential sanctions

 Prime Minister Benjamin Netanyahu said Israel is actively exploring the use of cryptocurrencies to bypass potential international banking sanctions, drawing fierce domestic backlash days ahead of a tightly contested national election. 

"We need to prepare ways to evade banking sanctions through an alternative economic system," Netanyahu said in an interview with Israel’s Channel 10. "You know what that means - the currencies that can bypass them. I’m working on that too." Asked directly whether he was referring to crypto assets, Netanyahu replied: "Very correct."

The remarks drew swift condemnation from political opponents, who warned that adopting tactics used by rogue states risks severing Israel’s export-reliant economy from Western capital markets, according to Bloomberg. 

Opposition Leader Yair Lapid accused the prime minister of pursuing policies that would undermine Israel’s integration with global finance.

The proposal to circumvent sanctions through digital currencies "belongs to countries like Iran, Russia, and Venezuela - nations whose banks are cut off from the world, whose companies cannot accept payments, and whose young people are fleeing," Lapid wrote in a post on X. "That’s his vision."

Netanyahu’s remarks land in the final stretch of campaigning ahead of the Oct. 27 election for the 120-seat Knesset, where the prime minister faces a formidable challenge from a centrist opposition bloc led by former military chief of staff Gadi Eisenkot.

Growing sanctions fears threaten tech-driven economy

A coalition of 12 nations led by the UK announced coordinated measures targeting entities involved in West Bank settlement expansion. British Foreign Secretary Ed Miliband confirmed planned restrictions would extend beyond individual settlers to target corporate entities, banks, and contractors providing financing, construction, or operational services.

Economists and banking executives have warned that if Western sanctions target Israeli domestic commercial lenders - including Bank Hapoalim and Bank Leumi - institutions could be severed from the global SWIFT payment network and U.S. dollar clearing corridors.

Market analysts caution that any systemic friction in cross-border settlements would deal a severe blow to Israel’s technology sector, which relies heavily on seamless international venture capital inflows and foreign currency liquidity.