JERUSALEM — The Bank of Israel has publicly rejected Prime Minister Benjamin Netanyahu’s suggestion that cryptocurrency could help Israel get around possible economic sanctions, Ynet, The Times of Israel and Reuters reported.
Netanyahu had said: “There could be sanctions, and sanctions on banks so you need to set up a bypass economy … there are currencies that can bypass … We are also working on that.”
In response, the central bank said crypto “cannot be used as a route for bypassing sanctions,” adding that “the right course for Israel’s economy is to preserve our economic relations with our main trading partners,” The Times of Israel reported.
More than 100 economists, including former central bank governor Jacob Frenkel and Nobel laureates, signed a letter criticising the idea. Former bank supervisor Yair Avidan said: “Blockchain is not a solution for circumventing sanctions.”
Netanyahu told Channel 14: “I hear the resistance; I am taking it into account … I listen, but I do what I think [is best].”
Britain, France and Canada are moving to block imports from Israeli settlements. Israelis vote in a general election on Tuesday.
Sources: Ynet, The Times of Israel, Reuters via Investing.com
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