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<ul>
 <li>The Bank of Israel said cryptocurrency cannot bypass international sanctions and urged Israel to protect economic ties with major trading partners.</li>
 <li>More than 100 economists, including former central bank governor Jacob Frenkel, warned sanctions could hurt investment and living standards.</li>
 <li>Gadi Eisenkot and Yair Lapid criticized Netanyahu’s proposal, warning it could weaken national security and drive companies abroad.</li>
</ul>
<p>The Bank of Israel rejected Prime Minister Benjamin Netanyahu’s <a href="https://www.ft.com/content/39e475e7-0392-4856-aaaf-5ab3e35b8215?syn-25a6b1a6=1" rel="noopener noreferrer nofollow">proposal</a> to explore cryptocurrency as a way around potential international financial sanctions. In a statement on October 24, the central bank urged Israel to protect economic ties with major trading partners. Netanyahu raised the proposal during an October 23 television interview, citing possible restrictions on Israeli banks.</p>
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<h2 class="wp-block-heading" id="strong-bank-says-crypto-cannot-bypass-sanctions-strong"><strong>Bank Says Crypto Cannot Bypass Sanctions</strong></h2>
<p>According to the central bank, cryptocurrencies cannot serve as a means of circumventing sanctions imposed on Israel. It urged political leaders to focus on preventing restrictions and limiting their economic impact.</p>
<p>Netanyahu said he was preparing for a scenario involving broader international sanctions. He warned that restrictions on Israeli banks could require an alternative financial system. When asked about <a href="https://cryptofrontnews.com/blockchain-association-seeks-major-changes-to-sec-crypto-rules/" rel="noopener noreferrer nofollow">cryptocurrency</a>, he confirmed it was among the options under consideration and also mentioned blockchain technology.</p>
<p>The proposal comes as Britain, France and Canada have announced plans to block imports from Israeli settlements in the occupied West Bank. Those measures target settlement policy amid growing international criticism of Israel’s government.</p>
<h2 class="wp-block-heading" id="strong-economists-warn-of-economic-consequences-strong"><strong>Economists Warn of Economic Consequences</strong></h2>
<p>The proposal also drew criticism from economists and political opponents. More than 100 economists, including former Bank of Israel officials, signed a letter opposing Netanyahu’s plan on Sunday.</p>
<p>The signatories included former central bank governor Jacob Frenkel and several Nobel laureates. They warned that sanctions could increase unemployment, reduce foreign investment and weaken Israel’s international economic standing.</p>
<p>The letter cited South Africa, Iran and <a href="https://cryptofrontnews.com/htx-adds-russia-to-restricted-jurisdictions-after-bitget-and-mexc/" rel="noopener noreferrer nofollow">Russia</a> as examples of countries affected by similar sanctions. It warned that Israeli living standards could fall and the state’s ability to finance security could suffer.</p>
<h2 class="wp-block-heading" id="strong-eisenkot-and-lapid-criticize-netanyahu-s-proposal-strong"><strong>Eisenkot and Lapid Criticize Netanyahu’s Proposal</strong></h2>
<p>Gadi Eisenkot, Netanyahu’s main rival in Tuesday’s election, called the cryptocurrency proposal “madness.” He warned that his rival’s “BibiCoin policy” could push companies abroad and undermine national security.</p>
<p>Opposition leader Yair Lapid also criticized Netanyahu’s remarks. He warned that Israelis could face shortages similar to those experienced in Russia and Iran. Meanwhile, Netanyahu defended his record on Sunday and urged voters to support him.&nbsp;</p>
<p>He also said he and U.S. President Donald Trump had two years left to work together against <a href="https://cryptofrontnews.com/binance-ceo-richard-teng-rejects-wsj-iran-allegations/" rel="noopener noreferrer nofollow">Iran’s rulers</a>. Opinion polls pointed to a possible electoral stalemate, with neither Netanyahu’s ruling coalition nor an opposition alliance securing a parliamentary majority.</p>

Israel Central Bank Rejects Netanyahu’s Crypto Plan to Evade Sanctions

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