'BibiCoin policy': Netanyahu faces backlash over plan to use crypto to bypass sanctions

Israeli Prime Minister Benjamin Netanyahu has faced criticism from the Bank of Israel after proposing that cryptocurrency and blockchain technology could help Israel bypass potential international sanctions. In an interview, Netanyahu claimed he was preparing for a scenario where sanctions on Israeli banks might occur, suggesting the use of crypto and blockchain technology as a potential solution.

The central bank dismissed this idea, stating that cryptocurrencies cannot serve as a means to circumvent sanctions and urged the government to prioritize maintaining economic relations with Israel's main trading partners. Netanyahu acknowledged the criticism and stated that he would take the bank's advice into account but ultimately follow his own judgment.

The proposal comes amidst diplomatic pressure on Israel due to its settlement policy in the West Bank, with Western countries announcing measures targeting goods from Israeli settlements. Economists and former central bank officials have warned that Netanyahu's proposal could lead to higher unemployment, reduced foreign investment, and further damage Israel's international economic standing.

Opposition leaders have also attacked the plan, describing it as "madness" and potentially weakening national security. The controversy arises as Netanyahu faces pressure over security and the economy, following a recent military operation in the West Bank and ongoing tensions.