'Of no help whatsoever': Economists, entrepreneurs call out Netanyahu for 'bizarre' crypto plan

A group of 109 economists, business leaders, high-tech entrepreneurs, and former senior public officials issued a strongly worded statement expressing "deep anxiety and concern" over Prime Minister Benjamin Netanyahu's conduct, warning of irreversible damage to Israel's economy if international sanctions are imposed.

The letter followed an interview in which Netanyahu made clear that he was not concerned about sanctions, said that US military aid "is not something that will last forever and will eventually end," and revealed that he had requested a plan to circumvent banking sanctions using cryptocurrencies and blockchain technology.

"The prime minister's remarks demonstrate a fundamental lack of understanding and ignorance in the face of Israel's collapsing standing in the international arena," the 109 signatories charged in their letter. "Netanyahu is knowingly leading the State of Israel toward an international economic boycott and isolation, and all he has to offer is a bizarre solution commonly used by criminal organizations that will be of no help whatsoever."

The economists warned that restrictions on Israel's banking system would lead to soaring unemployment, the complete disappearance of foreign investment, and the paralysis of the economy's primary growth engine, the high-tech sector.

They also warned of severe consequences for Israelis' daily lives, including the inability to use credit cards, the loss of access to online shopping platforms such as Amazon and AliExpress, the departure of foreign workers, and serious difficulties for the healthcare system in purchasing medicines and medical equipment.

The signatories compared the potential scenario to countries that have faced severe sanctions, including South Africa, Iran, and Russia, warning of a dramatic decline in living standards and devastating damage to Israel's ability to finance its defense needs.

The statement was signed by a long list of prominent figures, including two Nobel Prize laureates, Prof. Joel Mokyr (Economics) and Prof. Aaron Ciechanover (Chemistry).

Other signatories include Israel Prize laureate and former Bank of Israel governor Prof. Jacob Frenkel; former deputy governors Prof. Zvi Eckstein and Dr. Nadine Baudot-Trajtenberg; and former supervisors of banks Yair Avidan and Rony Hizkiyahu.

The list also includes many former senior Finance Ministry officials, including former directors-general Yarom Ariav, Prof. Avi Ben-Bassat, David Brodet, Haim Shani, and Prof. Manuel Trajtenberg, who also previously chaired the National Economic Council.

Also signing were former chief economist Shira Greenberg and former budget director Udi Nisan.

Prominent figures from the high-tech industry and business community include CyberArk founder Alon Cohen, Check Point co-founder Marius Nacht, G City founder Chaim Katzman, BIG Shopping Centers CEO Hai Galis and chairman Eitan Bar Zeev, high-tech entrepreneur Gigi Levy-Weiss, Fireblocks co-founders Idan Ofrat, Dov Moran, and Roy Vermus, and many others.

Bank of Israel emphasizes importance of maintaining economic relations

The wave of economic criticism followed an unusual response from the Bank of Israel, which clarified over the weekend that "cryptocurrencies cannot serve as a means of circumventing sanctions on Israel."

The central bank emphasized that "the right thing for Israel's economy is to preserve our economic relations with our main trading partners and focus on preventing sanctions."

Netanyahu responded to the remarks in an interview with Channel 14, saying, "I thank the Bank of Israel for its advice, but I do what I think is right."

The business sector also strongly rejected the proposal.

Galit Miran, CEO of the Israel-America Chamber of Commerce, warned against "adopting financial models characteristic of isolated and excluded countries," noting that such mechanisms could undermine investor confidence and Israel's credit rating.

The Manufacturers Association of Israel emphasized that the Israeli economy is built on free trade and the free movement of capital, and that maintaining these conditions is the only way to ensure economic resilience.

Netanyahu's election opponents condemn economic plan

The economic controversy quickly became a central issue in the election campaign, which will culminate on Tuesday.

Yashar party chairman Gadi Eisenkot issued his own stark warning: "If Netanyahu continues, there will be no savings, no international investments, and you will not be able to pay by credit card online or abroad. For Netanyahu, the conversation has shifted from prosperity to survival. After another term under him, we will long for the days of austerity."

Opposition leader Yair Lapid also attacked Netanyahu, saying, "Netanyahu admits in his own words that if his government is reelected, military aid will be finished and sanctions will be imposed, leading to insane price increases and irreparable damage."

B'Yachad party chairman Naftali Bennett said he was appalled by Netanyahu's vision. "This means the destruction of Israeli high-tech, the loss of livelihoods for hundreds of thousands of families, poverty for millions of Israelis, and a threat to security. Netanyahu is placing Israel in the same category as Iran, North Korea, and Russia."