Netanyahu floats an ‘alternative economy’, and his own central bank isn’t buying it

The headquarters of the Bank of Israel in Jerusalem. Israel’s central bank slaps down Netanyahu’s crypto sanctions-dodging idea in a public statement on October 25, 2026. — AFP pic

First Published: Sunday, 25 Oct 2026 8:05 PM MYT

JERUSALEM, Oct 25 — Israel’s central bank has issued a rare rebuke of recent remarks from Prime Minister Benjamin Netanyahu suggesting that the country use cryptocurrency to help establish an “alternative economy” to withstand possible sanctions.

The remarks had already drawn criticism from Netanyahu’s rivals in this week’s national elections, who said they amounted to a tacit admission that the premier’s leadership was generating harmful consequences for Israel.

“Cryptocurrencies cannot be used as a way to bypass sanctions on Israel.

“What is right for Israel’s economy is to preserve our economic relations with our main trading partners and focus on preventing sanctions and their negative impact on the economy,” the Bank of Israel said in a statement on Saturday night.

“This matter falls within the responsibility of the political leadership, and it is appropriate to act to advance it.”

In a recent interview with Israel’s Channel 10, Netanyahu had acknowledged rising pressure from key ally the United States and said “there could be sanctions, including banking sanctions”.

“You need to prepare an alternative economy that can operate around them,” he added, saying he had ordered plans to be drawn up using blockchain technology to that end. — AFP