Key Takeaways
- • Israeli Prime Minister Benjamin Netanyahu raised the possibility of using cryptocurrency and blockchain technology as part of Israel's response to potential international economic sanctions, according to Reuters citing an interview with Israel's Channel 10.
- • The Bank of Israel rejected the idea that cryptocurrency can bypass sanctions, urging the country to preserve economic ties with its main trading partners and prevent sanctions from being imposed.
- • More than 100 economists, including former Bank of Israel officials, former central bank governor Jacob Frenkel and several Nobel laureates, warned that sanctions could raise unemployment, reduce foreign investment and weaken Israel's ability to fund security and defence.
- • The debate follows measures by Britain, France and Canada targeting imports from Israeli settlements in the occupied West Bank.
Summary
Israeli Prime Minister Benjamin Netanyahu has suggested that cryptocurrency and blockchain technology could form part of Israel's response to potential international economic sanctions. According to Reuters, Netanyahu said in an interview with Israel's Channel 10 on Friday that Israel needed to prepare for a scenario in which sanctions could extend to its banking system, and he agreed that cryptocurrency could be part of an alternative economic system.
The proposal has drawn sharp criticism from the Bank of Israel, which said that cryptocurrency cannot be used to bypass sanctions. The central bank argued that the right course is to preserve economic relations with major trading partners and to focus on preventing sanctions and their negative impact on the economy. The bank's position stands in direct contrast to the prime minister's suggestion.
The comments come amid growing international criticism of Israel's policies, including settlement activity in the occupied West Bank. Britain, France and Canada have announced measures targeting imports from Israeli settlements.
More than 100 economists, including former Bank of Israel officials, former central bank governor Jacob Frenkel and several Nobel laureates, have signed a letter warning of the economic consequences of sanctions. They said such measures could increase unemployment, reduce foreign investment, damage Israel's standing in the international economy, cause living standards to fall sharply and weaken the government's ability to finance security and defence. The economists cited the experiences of South Africa, Iran and Russia as examples of the costs of economic isolation.
The proposal has drawn sharp criticism from the Bank of Israel, which said that cryptocurrency cannot be used to bypass sanctions. The central bank argued that the right course is to preserve economic relations with major trading partners and to focus on preventing sanctions and their negative impact on the economy. The bank's position stands in direct contrast to the prime minister's suggestion.
The comments come amid growing international criticism of Israel's policies, including settlement activity in the occupied West Bank. Britain, France and Canada have announced measures targeting imports from Israeli settlements.
More than 100 economists, including former Bank of Israel officials, former central bank governor Jacob Frenkel and several Nobel laureates, have signed a letter warning of the economic consequences of sanctions. They said such measures could increase unemployment, reduce foreign investment, damage Israel's standing in the international economy, cause living standards to fall sharply and weaken the government's ability to finance security and defence. The economists cited the experiences of South Africa, Iran and Russia as examples of the costs of economic isolation.
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