Israeli Central Bank Rejects Crypto as Shield Against Potential Sanctions

Israel’s central bank has rejected relying on cryptocurrencies to circumvent possible international sanctions, following Prime Minister Benjamin Netanyahu’s announcement of plans for alternative financial arrangements.

Netanyahu said he had directed the preparation of financial contingency plans based on blockchain technology. The proposed approach would explore alternatives in the event of international restrictions.

The central bank’s objection focused on using cryptocurrencies as a means of getting around potential sanctions, putting it at odds with the approach outlined by the prime minister.

Blockchain is the technology underpinning many cryptocurrencies, although its uses extend beyond digital currencies. The summary of Netanyahu’s instructions did not specify which applications the alternative plans would involve.

The disagreement concerns preparations for possible sanctions, rather than measures identified as already in force. No details were provided on a timetable for the plans or how they would operate.