Israeli Prime Minister Benjamin Netanyahu has proposed using cryptocurrencies to bypass possible international sanctions. This was reported by Qazaqyia.kz citing Kursiv Media.
His idea has drawn sharp criticism from the Central Bank, economists, and the opposition. Experts warned that such a step could lead to the country's economic isolation, Reuters reports.
In an interview with Israeli Channel 10, the prime minister said the country is preparing for possible restrictions against the banking system.
"There may be sanctions, including against banks. Therefore, we need to create an economy that will allow us to bypass them. There are currencies with which this can be done," Netanyahu said.
Asked whether he was referring to cryptocurrencies, he answered in the affirmative and mentioned blockchain technology.
Earlier, the UK, France, and Canada announced their intention to restrict imports of goods from Israeli settlements in the West Bank of the Jordan River.
The Bank of Israel opposed the initiative, stating that cryptocurrencies would not help bypass sanctions. The regulator urged the authorities to focus on maintaining trade relations with international partners.
More than 100 economists, including former Central Bank head Jacob Frenkel and Nobel laureates, signed an open letter. They warned of possible rising unemployment, capital outflow, and a decline in living standards.
According to the letter's authors, Israel risks facing consequences that Iran, Russia, and South Africa have previously experienced.
Netanyahu's main election rival, Gadi Eisenkot, called the cryptocurrency plan "madness" and dubbed it "BibiCoin." He believes such a policy would force companies to leave Israel.
Opposition leader Yair Lapid warned that economic isolation could lead to shortages of goods and bread lines.
The scandal erupted ahead of the parliamentary elections on October 27. According to polls, neither Netanyahu's ruling coalition nor the opposition can currently count on a guaranteed majority in parliament.
Earlier, Kursiv wrote that Israel, thanks to US support, avoided immediate suspension from European football tournaments. At the same time, UN experts called on FIFA and UEFA to impose restrictions against Israeli teams.
Kursiv also reported that Turkey is seeking an international arrest warrant for Netanyahu through Interpol. Ankara accuses the Israeli prime minister of crimes against humanity, but his office rejects these accusations.