Cryptocurrencies cannot be used to circumvent sanctions, says Israeli central bank

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https://cryptoast.fr/cryptoentreprises-peuvent-pas-servir-contourner-sanctions-banque-centrale-israelienne/

While the Israeli legislative elections intended to elect the 120 deputies of the Knesset are being held this Tuesday, October 27, information from the Israeli media The Marker returns to the recent declarations of Prime Minister Benjamin Netanyahu on the subject of the use of cryptocurrencies in order to circumvent possible sanctions issued against the Jewish state.

An announcement by the Prime Minister immediately taken up as part of the electoral campaign, the vote of which is being monitored very closely to determine whether the Israeli population continues to give its confidence to Benjamin Netanyahu, or whether a new political era could be about to begin.

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Why this interest of the Israeli Prime Minister in cryptocurrencies? Former journalist and opposition member Yair Lapid sees this as a way of anticipating possible sanctions announced by countries like the United Kingdom (alongside 11 other countries, including France) with regard to Israeli settlements in the West Bank in the event of a new Netanyahu mandate.

A scenario that does not seem to suit everyone, as seems to be demonstrated by the recent press release from the Israeli central bank which unequivocally explains that the use of cryptocurrencies requested by Benjamin Netanyahu in order to circumvent sanctions does not represent an acceptable solution.

Cryptocurrencies cannot serve as a route around sanctions, and the right approach for the Israeli economy is to preserve economic relations with its main trading partners.

A rejection also expressed by the general director of the Israel-United States Chamber of Commerce, Galit Miran, who explains that this would amount to adopting “a financial model characteristic of isolated and ostracized countries”, such as for example Russia, North Korea, Venezuela or Iran.

It is important to emphasize that the strength of the Israeli economy is based on the strategic link with the United States, open access to the global banking system and the flow of foreign investments to Israel. I believe that rather than planning sanctions evasion mechanisms, which risk damaging investor confidence and Israel's credit rating, any government that is formed should work to strengthen economic relations with the United States and prevent economic isolation.

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Machine-translated from French