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Israeli Prime Minister Benjamin Netanyahu stated that his government is “preparing pathways to bypass banking sanctions through an alternative economic system,” clarifying that he refers to the use of cryptocurrency and blockchain.
Previously, digital currencies were viewed by the Israeli government primarily as an investment object rather than a matter of state policy, according to the Financial Times.
“Blockchain is an alternative to sanctions,” Netanyahu said in an interview with Channel 10, calling the technology a “national strategic tool.”
The Bank of Israel immediately criticized the prime minister’s idea. In an official statement, the regulator emphasized that cryptocurrencies “cannot serve as a means to bypass sanctions” and urged not to undermine relations with key trading partners.
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Against the backdrop of the election campaign, opposition figures joined the criticism. Yesh Atid party leader Gadi Eisenkot called Netanyahu’s concept “BibiCoin” on social network X and declared it a threat to national security. Another politician, Yair Lapid, compared the prospect of creating a “bypass economy” to the situation that arose in Iran, Russia, and Venezuela.
CryptoJungle founder Ben Samoha clarified in a conversation with Cointelegraph that blockchain, on the contrary, facilitates the tracking of illegal transactions. The experience of the US Department of the Treasury regarding Iran shows that digital footprints allow blocking access to fiat money and even freezing funds. According to the expert, the Israeli economy is not capable of effectively using cryptocurrencies to evade sanctions that may be imposed on Netanyahu.
Elections in Israel will conclude on October 27. In September, 12 countries led by the United Kingdom announced measures regarding Israeli settlements in the West Bank. Netanyahu is trying to mobilize supporters, insisting that sanctions could soon extend to all of Israel.
According to TRM Labs, in 2025, the volume of transactions related to bypassing international sanctions grew by 400%, with a significant portion of operations involving the Russian ruble stablecoin A7A5. Major flows were recorded in China, Southeast Asian countries, and South Africa, with the largest volumes occurring in the PRC and Hong Kong. TRM Labs identified Garantex and Grinex exchanges as key venues for operations with this token.
