The Bank of Israel issued a sharp response Saturday evening to Prime Minister Benjamin Netanyahu’s suggestion that Israel is exploring blockchain technology as one alternative for dealing with potential banking sanctions. The unusual statement was released after the central bank received numerous media inquiries during the Sabbath.
Benjamin Netanyahu in an Interview with Roi Katz on Channel 10: Blockchain Is One Possible Solution to Economic Sanctions Against Israel
בנימין נתניהו בריאיון לרועי כ”ץ בערוץ 10: הבלוקצ’יין הוא אחד הפתרונות האפשריים להתמודדות עם סנקציות כלכליות על ישראל
@roy_katz
@netanyahu https://t.co/shbGOoDJNs— ערוץ 10 (@tv10israel) October 23, 2026
The central bank flatly rejected the option the prime minister presented, stating unequivocally that “cryptocurrencies cannot serve as a route to circumvent sanctions.” The bank emphasized that the right way to deal with the threat is diplomatic, not technological.
The bank added that “the right thing for Israel’s economy is to preserve economic relations with our main trading partners and to focus on preventing sanctions and their negative impact on the economy.” The central bank directed responsibility to the political leadership, noting the issue falls under its purview.
The controversy began after Netanyahu was asked in a Channel 10 interview about his concerns over potential economic sanctions. “Of course I’m concerned,” the prime minister replied, adding that the country needs to prepare for the possibility of banking sanctions through a “circumventing economy.”
When asked if blockchain is the alternative to sanctions, Netanyahu responded: “One of them, certainly. And I’ve already asked to prepare the plan for this.” Now, the Bank of Israel is making clear the solution isn’t viable and is calling on the government to work on preventing sanctions in the first place.
Meanwhile, Dr. Eli David (@DrEliDavid
) points out, “Israel today has zero gold reserves, an anomalous situation compared to most Western countries. This is an irresponsible policy of the Bank of Israel. A country that prepares even for extreme scenarios must hold significant reserves of physical gold.”