Bank of Israel says cryptocurrencies will not help circumvent sanctions — Anadolu Agency
The Bank of Israel has stated that cryptocurrencies cannot be a tool for circumventing possible economic sanctions. The central bank's response came after Prime Minister Benjamin Netanyahu proposed preparing alternative financial mechanisms in case of restrictions, Anadolu Agency reports.
Central bank's position
According to the Israeli public broadcaster, the Bank of Israel stressed that cryptocurrencies cannot be a way to circumvent sanctions. The central bank said that maintaining economic ties with key trading partners, as well as preventing sanctions and their negative impact, is the right course for the Israeli economy.
The bank added that preventing sanctions and limiting their consequences fall within the responsibility of the country's political leadership.
In an interview with an Israeli business channel, Netanyahu expressed concern about possible economic and banking sanctions. He explained that he had instructed officials to prepare an action plan, one element of which could be cryptocurrencies. The prime minister also said that after Donald Trump's presidency ends, Washington's position on Israel could change and U.S. assistance could cease.
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Opposition reaction
Opposition leader Yair Lapid criticized Netanyahu's statements. Yoav Horowitz, a former head of the prime minister's office and co-founder of the opposition Yashar party, said that such remarks could trigger an outflow of funds from the country. In his view, they could also discourage people from living in Israel, opening businesses and bank accounts, and investing.
The discussion is taking place three days before the Knesset elections scheduled for Tuesday, amid debate over the possible economic consequences of government policy and Israel's international trade and financial ties.
European proposals
In September 2025, the European Commission proposed suspending part of Israel's trade preferences under the bilateral Association Agreement, as well as imposing sanctions on extremist Israeli ministers and settlers involved in violence. In May 2026, EU foreign ministers agreed on sanctions against settlers and organizations supporting settlement activity, but disagreements among the bloc's countries remained over broader economic restrictions.
