Israeli Prime Minister Benjamin Netanyahu instructed officials to prepare a plan for using blockchain to circumvent potential economic sanctions, including banking restrictions. He said this in an interview with Channel 10.
The head of government admitted that he fears restrictions could be imposed on the country's financial system.
According to him, Israel needs to prepare its economy to operate under such conditions. The prime minister mentioned currencies that can be used to circumvent restrictions and said that he was working on this area.
The interviewer asked whether he viewed blockchain as an alternative in the event of economic sanctions.
“Certainly, it’s one option. I’ve already asked for a relevant plan to be prepared,” Netanyahu replied.
He did not specify who had been tasked with developing it, which networks or digital assets might be used, or when the relevant infrastructure could be in place.
In the same interview, Netanyahu called for reducing Israel’s dependence on U.S. military aid. In his view, the country cannot rely on aid packages indefinitely. He also said Israel needs to prepare for changes in the political landscape after Donald Trump’s presidential term ends.
The prime minister linked strengthening the country’s independence to developing its own weapons and ammunition production. He also defended increasing the defense budget by 400 billion shekels in the coming years.
Crypto industry reaction
Nir Hirschman, head of the Israeli Crypto Companies Forum, welcomed the government’s interest in blockchain but drew attention to the transparency of public networks. The Jerusalem Post quoted his comments.
“The technology is not a refuge for hiding money: public blockchains provide transparency and make it possible to track transactions,” he emphasized.
In Hirschman’s view, cryptocurrencies could simplify capital transfers and strengthen Israel’s ties with global financial markets. He added that the forum was ready to work with the government and regulators on reforms in this area.
Recall that in April, Israel’s Capital Market Authority issued its first license to launch a shekel-pegged stablecoin. The issuer was crypto exchange Bits of Gold.