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Israeli Prime Minister Benjamin Netanyahu said he had requested an Israel blockchain plan to prepare for possible banking sanctions, according to a Channel 10 interview <a href="https://decrypt.co/381758/netanyahu-crypto-plan-banking-sanctions-israel” rel=”nofollow noopener” target=”_blank”>reported by Decrypt on October 23, four days before Israel’s national election. The plan would prepare an alternative means of moving money if restrictions reach the country’s banks.
“There could be sanctions, including banking sanctions,” Netanyahu said, calling for preparations for an “alternative economy.” Asked about blockchain, he added: “Blockchain is one of the alternatives, certainly. I have already asked for a plan to be prepared for that.”
- Settlement Restrictions Raise Concern About Wider Pressure
- Crypto Transfers Remain Exposed to Sanctions and Freezes
- Israel’s Next Step Is Turning the Israel Blockchain Plan Into a Proposal
- FAQ
Settlement Restrictions Raise Concern About Wider Pressure
Netanyahu’s request comes as Britain targets businesses supporting settlement construction. The U.K. banned imports from Israeli settlements in early September and announced sanctions on people and companies involved in building them.
Eleven other countries, including France and Canada, said they intend to restrict trade in settlement goods. These measures target settlement activity; the broader banking sanctions Netanyahu discussed remain a possibility.
More than 60 Israeli economists and former officials warned that week that restrictions aimed at West Bank settlements could spread to the wider economy and raise living costs Restrictions on bank payments could make it harder for importers to pay overseas suppliers, adding pressure to consumer prices
Crypto Transfers Remain Exposed to Sanctions and Freezes
The strongest obstacle to a blockchain workaround is enforcement. Public networks leave a traceable transaction history, and centralized token issuers can freeze their own tokens. Israel has itself used sanctions orders against crypto wallets it accused of financing Iran-linked activity.
On July 1, Defense Minister Israel Katz signed sanctions orders on 37 crypto wallets holding more than 24 million shekels that Israel says belong to Iran’s Revolutionary Guards and were meant to fund Hezbollah.
Tether can freeze any wallet holding its dollar-pegged USDT▼$0.9991 token. It froze $344 million in April working with U.S. authorities, and in July it froze $131 million in wallets tied to Iran’s central bank and armed forces after U.S. sanctions.
Russia’s experience also shows how quickly a crypto payment route can lose activity. Elliptic estimated that the ruble-pegged A7A5 token moved about $102 billion in its first year. Sanctions and a hack of its main exchange subsequently cut daily volume by 96% from its peak.
Israel’s Next Step Is Turning the Israel Blockchain Plan Into a Proposal
Netanyahu did not identify the drafting team, a currency or network, or a completion date. Those operational choices would determine how the proposed system handles payments and how exposed it remains to intermediaries enforcing sanctions.
The request fits his wider concern about future American support. “We must prepare for a rainy day,” he said, describing a need for greater independence. His expectation that U.S. military assistance will eventually end is his assessment, rather than an announced U.S. policy change.
The current military aid agreement expires in September 2028. For the blockchain proposal, the next meaningful development would be a concrete payment design and a decision on whether to implement it; neither the election nor the aid agreement’s expiry is a rollout deadline.
When is Israel’s national election?
Israelis vote on October 27, 2026. Netanyahu’s blockchain comments reached publication four days before the vote.
When does the current U.S. military aid agreement expire?
The agreement runs through September 2028. Its expiration falls just before the next U.S. presidential election.
Which Israeli goods are covered by the U.K. import ban described in the report?
The ban covers imports from Israeli settlements. Britain also announced sanctions against people and companies involved in settlement construction.
Which countries besides the U.K. are named as intending to restrict settlement trade?
France and Canada are among the countries named. They belong to a group of eleven countries that said they intended to restrict trade in settlement goods.
<a href="https://xpertsstudio.com/what-you-can-still-recover/” title=”What You Can Still Recover”>What crypto-wallet sanctions did Israel’s defense minister sign on July 1?
Defense Minister Israel Katz signed orders targeting 37 wallets holding more than 24 million shekels. Israel alleged that the wallets belonged to Iran’s Revolutionary Guards and were intended to fund Hezbollah.
This article is for information only and is not financial advice.
Source: bitcoinfoundation.org