# 109 Economists, Bank of Israel Warn Netanyahu's Crypto-Sanctions Plan Would Cause 'Irreversible Damage'

> A joint statement signed by former Bank of Israel governors and ex-Finance Ministry officials calls the prime minister's blockchain proposal 'puzzling' and warns it could cut off credit cards, medical supply chains and foreign investment.

- Source: Israel Politics Post
- Canonical URL: https://israelpoliticspost.com/article/economists-bank-of-israel-warn-netanyahu-crypto-sanctions-plan
- Author: Israel Politics Post Staff
- Section: Economy
- Published: 2026-10-25T12:00:00.000Z
- Updated: 2026-10-25T12:00:00.000Z
- Tags: Bank of Israel, economists, Netanyahu, sanctions, cryptocurrency, 2026 election

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A group of 109 senior Israeli economists, organized as the Economists' Forum for Democracy, issued a joint statement warning that Prime Minister Benjamin Netanyahu's proposal to use cryptocurrency and blockchain technology to circumvent international sanctions would cause "irreversible damage" to the economy, according to a report by The Times of Israel. Signatories included former Bank of Israel governors Jacob Frenkel and Zvika Eckstein, along with several former Finance Ministry officials.

The forum called the proposal "puzzling" and warned that sanctions could leave Israeli corporations, exporters and the tech sector unable to operate internationally, trigger a surge in unemployment, and drive away foreign investment. The economists also warned that ordinary Israelis could lose access to credit cards and international e-commerce platforms, that medical supply chains could be compromised, and that foreign workers could be unable to send money home.

The Bank of Israel issued its own rejection of the plan, stating that digital currencies "cannot be used as a route for bypassing sanctions" and stressing the importance of preserving Israel's existing economic ties abroad. Netanyahu first floated the idea in an October 22 interview with Channel 10's economic network, saying he had asked advisers to prepare an implementation plan.

The rebuke, arriving just two days before the election, amounts to one of the most pointed economic interventions of the campaign, with the country's own monetary authority publicly contradicting a sitting prime minister's policy proposal in the race's final stretch.

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Originally published by Israel Politics Post. Free to cite with attribution and a link to https://israelpoliticspost.com/article/economists-bank-of-israel-warn-netanyahu-crypto-sanctions-plan.