“Cryptocurrencies cannot be used as a way to circumvent sanctions”: the Israeli Central Bank reframes Benjamin Netanyahu after his remarks

In a rare statement, the Israeli Central Bank rejected the comments of Prime Minister Benjamin Netanyahu, who declared during the election campaign that the country must prepare for a "circumvention economy" in the face of possible international sanctions. “We must understand that there could be sanctions, in particular banking sanctions,” Benjamin Netanyahu said on Friday, saying he had requested the preparation of “a plan” aimed at allowing Israeli banks to bypass international channels through the use of cryptocurrencies. “Cryptocurrencies cannot serve as a way to circumvent sanctions,” the Central Bank retorted on Saturday evening, calling instead to focus on “preventing” sanctions.

“Circumvention route to sanctions” The Prime Minister's remarks had already been rejected by his political opponents and several big names in the Israeli business world. During the campaign for the legislative elections scheduled for Tuesday, which promise to be very close and are widely seen as a referendum for or against Benjamin Netanyahu, the latter has continued to increase alarmist remarks, suggesting that the country would collapse in the event of his camp's defeat. He did not name the countries he expects to take sanctions, but his statements came after the United Kingdom and other countries imposed sanctions targeting products from Israeli settlements in the occupied West Bank, in response to settler attacks on Palestinians and settlement construction.

Several countries today use cryptocurrencies to circumvent international economic sanctions, notably Russia with its A7A5 stablecoin and even Iran.

Machine-translated from French