Overview
- Mr Netanyahu said Friday he had asked advisers to prepare a blockchain or cryptocurrency plan to cope with possible international banking sanctions.
- The Bank of Israel issued a rare public rebuke on October 24, saying cryptocurrencies cannot be used to circumvent sanctions and urging preservation of ties with major trading partners.
- More than 100 economists and former officials signed a letter warning that trying to evade sanctions with crypto would cause severe and potentially irreversible harm to Israel’s economy.
- The proposal remains undefined: officials have not named a currency, blockchain, implementing body, timeline or any legal or technical safeguards.
- With national elections on October 27, market participants and bankers say trading could be unsettled when markets reopen, and analysts warn the debate could deepen diplomatic isolation or prompt efforts to reassure investors.