Netanyahu warns of banking sanctions and proposes an unrealistic cryptocurrency solution

ISRAEL - In Brief 26 Oct 2026 by Sani Ziv
Prime Minister Benjamin Netanyahu warned on Friday that Israel could face international economic sanctions, including restrictions on its banking system. In a bizarre statement during an interview with Israel's Economy Channel, Netanyahu suggested that cryptocurrencies and blockchain technology could provide alternative payment channels. His comments came just days before the October 27 Knesset elections. The potential economic impact of international sanctions has been discussed several times in recent months, as Israel has faced a growing number of measures mainly targeting settlements and related activities in the West Bank. However, these measures have so far been limited in scope and have not affected Israel's banking system as a whole. At this stage, there are no comprehensive international banking sanctions against Israel, and we continue to see the risk of such measures as limited. Given the central role of American banks and the US dollar in international payments, broad financial sanctions would be difficult to implement effectively without US participation. Nevertheless, Netanyahu's suggestion that cryptocurrencies could provide an alternative to the conventional banking system is economically unrealistic. Cryptocurrencies cannot provide a practical substitute for international banking channels in the event of widespread sanctions. International trade requires the cooperation of banks, payment institutions and trading partners. There is little reason to expect European or American companies to accept cryptocurrency payments from Israeli companies or to make payments to Israeli suppliers in cryptocurrencies to circumvent financial restrictions. The Bank of Is...

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