Israel's Netanyahu Plans to Use Blockchain to Dodge Possible Sanctions

Israel is preparing a backup plan in case it faces economic punishment from other countries. Prime Minister Benjamin Netanyahu has ordered officials to prepare a plan for using blockchain (the digital technology behind cryptocurrencies, which records transactions on a shared public ledger) to get around possible sanctions.

Sanctions are penalties — like banking restrictions — that countries impose to pressure another nation by cutting off its access to the global financial system. In a TV interview, Netanyahu admitted he's worried such restrictions could be placed on Israel's financial system.

What he actually said:

• Israel needs to prepare its economy to function even under sanctions.
• He mentioned currencies that can bypass restrictions and said he's working on this.
• When asked if blockchain could be an alternative during sanctions, he replied: "As one of the options, certainly. I've already asked for a plan to be prepared."

Importantly, Netanyahu did not reveal details — he didn't say who is building the plan, which blockchain networks or digital assets would be used, or when any system might be ready.

Other points from the interview:

• He called for Israel to reduce its dependence on U.S. military aid, saying the country can't rely on support packages forever.
• He wants Israel to prepare for political changes after Donald Trump's presidential term ends.
• He defended boosting the defense budget by 400 billion shekels (Israel's currency) over the coming years.

Industry reaction: Nir Hirshman, head of Israel's Crypto Companies Forum, welcomed the government's interest but offered a reality check. He warned that public blockchains are transparent — meaning anyone can trace transactions — so they are not a good hiding place for money. Still, he believes crypto could make money transfers easier and strengthen Israel's ties to global markets.

The bottom line: Israel is exploring whether crypto technology could act as a financial safety net if it ever gets cut off from traditional banking. For now, it's just an early-stage idea with no concrete details. Notably, in April Israel's Capital Markets Authority issued its first-ever license for a stablecoin (a crypto token pegged to a stable currency) tied to the shekel.

This is an AI-generated summary. Read the original article at: https://forklog.com/news/netanyahu-poruchil-podgotovit-plan-ispolzovaniya-blokchejna-na-sluchaj-sanktsij