Netanyahu requests blockchain plan for possible banking sanctions
Benjamin Netanyahu said blockchain could be one option if Israel faces banking restrictions, but no system, asset or timetable has been announced.
By Sofia Marchetti · Columnist
· 3 min read
Israel’s Netanyahu crypto sanctions plan remains a request for contingency planning, not an operating national payment system. Prime Minister Benjamin Netanyahu said he had asked for a blockchain proposal as one possible response if Israel were to face future banking sanctions, according to reports by i24NEWS and The Jerusalem Post.
For investors and crypto users, the key distinction is that Netanyahu did not announce a chosen cryptocurrency, blockchain network or launch date. The available reporting describes an early-stage request to prepare options, rather than approval of a system to move state or commercial payments.
In a Channel 10 interview reported Oct. 23, Netanyahu said Israel should prepare for the possibility of banking restrictions and make alternative financial arrangements. Asked whether blockchain could be one such option, he said it was “one of them” and that he had already requested a plan, i24NEWS reported.
What did Netanyahu say about a crypto plan for sanctions?
Netanyahu’s remarks concerned possible future restrictions, not nationwide banking sanctions already imposed on Israel. He described blockchain as one potential alternative among others, according to i24NEWS and The Jerusalem Post.
He did not say which government body would prepare the proposal, how it would function, whether it would use an existing token or network, or when it might be completed. The reporting also provides no announced budget, legal authority or approval process for the idea.
Netanyahu separately said Israel should not assume that U.S. military aid would continue indefinitely. He presented both subjects as reasons for contingency planning, but did not announce a crypto program intended to replace U.S. assistance, i24NEWS reported.
Why blockchain would not make transactions invisible
Blockchain and cryptocurrency systems have often been discussed as alternatives to conventional financial channels. But Nir Hirschman, chief executive of the Crypto Companies Forum, said in a response reported by The Jerusalem Post that crypto was not a way to hide transactions. He said public blockchain networks permit transparency and transaction tracking.
That limitation is directly relevant to claims that a blockchain-based arrangement could bypass restrictions without scrutiny. Netanyahu did not explain how any proposed system would operate, while Hirschman’s comments point to the visibility of activity on public networks.
Israel has itself used crypto-related enforcement tools. Decrypt reported that Defense Minister Israel Katz signed orders on July 1 targeting 37 crypto wallets holding more than 24 million shekels. Israel said the wallets belonged to Iran’s Revolutionary Guards and were intended to fund Hezbollah. Those are allegations made by Israeli authorities.
Decrypt also reported that Tether, the issuer of the USDT stablecoin, can freeze wallets holding its token. That capability applies to USDT and should not be treated as a statement about every digital asset or blockchain network.
For now, the confirmed development is limited: Netanyahu has requested a blockchain plan as Israel considers potential banking restrictions. Whether that request produces a formal policy, a technical design or an operational system remains undisclosed.
This story draws on original reporting from Decrypt.
