Netanyahu warns Israel could face banking sanctions, prepares alternative financial system

Netanyahu says Israel is preparing alternatives to banking sanctions, including blockchain, and warns that US military aid cannot be taken for granted.

Prime Minister Benjamin Netanyahu warned that Israel could face banking sanctions and said he had ordered preparations for alternative financial mechanisms, including blockchain technology, in an interview with Channel 10, amid growing concerns about international economic pressure on Israel.

"We need to understand that there could be banking sanctions. You need to prepare an alternative economic system, and you know what that is, and you know which currencies can bypass this, and I'm working on that as well," Netanyahu said.

Asked whether blockchain technology could provide a means of dealing with economic sanctions against Israel, Netanyahu replied: "One of them. Certainly. And I've already asked for a plan to be prepared for that."

He also addressed the future of US military assistance to Israel.

"If you think we're going to continue receiving what I secured twice, and that's tens of billions of dollars in American aid for the defense budget, prepare yourselves and get used to the fact that it won't happen, because America has changed."

Additionally, Netanyahu rejected warnings by Bank of Israel Governor Prof. Amir Yaron concerning the expansion of the defense budget and the burden of defense spending on the Israeli economy.

"I disagree with him. Unequivocally, I disagree with him," Netanyahu said when asked about Yaron's warnings.

Crypto not a platform for hiding money, forum president says

Nir Hirschman, CEO of the Crypto Companies Forum, said on Friday in response to Netanyahu's remarks that he welcomed any development into crypto and blockchain technologies, but warned that it was not a means to hide money transactions.

"Crypto has the potential to strengthen Israel's connection to global financial markets and streamline capital transfers. At the same time, the technology is not a haven for hiding money: public blockchain networks allow for transparency and tracking of transactions," he said in an X post.

"The Crypto Companies Forum is ready to work with the government and regulators to promote appropriate reform in the field, to strengthen the economy and its ties with the world," he added.

US leads JPPI database of measures against Israel

According to a survey by the Jewish People Policy Institute (JPPI), the country with the highest number of recorded measures against Israel is its close ally, the United States.

According to JPPI's new database, which tracks sanctions, restrictions, and diplomatic measures against Israel worldwide, 15 measures were recorded in the US. Spain follows with 10 measures, the UK with eight, Turkey with seven, and Belgium with five. Ireland, with just three recorded sanctions, does not even make the top 10.

This finding does not, of course, mean that the US is more hostile toward Israel than Turkey or Ireland. On the contrary, it also reflects the depth of relations between the two countries.

Israel and the US maintain security, trade, investment, academic, and political ties on a far greater scale than Israel has with most other countries. As a result, there are also more areas in which sanctions, boycotts, or restrictions can be pursued.

The measures documented in the US illustrate this complexity. Some are not sweeping government decisions but rather legislative initiatives or proposed resolutions in Congress, including efforts to restrict the sale of weapons, ammunition, or defense equipment to Israel.

The database also includes academic measures, such as calls by student associations, faculty organizations, or academic institutions to boycott Israel, divest from Israeli investments, or restrict ties with the country.