Netanyahu orders blockchain plan as Israel braces for possible banking sanctions

23 Oct 2026

23 Oct 2026, 19:09 UTC+02:00

Israeli Prime Minister Benjamin Netanyahu said on Friday that Israel should prepare an “alternate economy” able to work around possible banking sanctions, and that blockchain technology is one of the options. Asked on Israel’s Channel 10 economic network whether blockchain could help the country deal with sanctions, he replied: “One of them. Certainly. And I’ve already asked for a plan to be prepared for that,” according to The Jerusalem Post.

What Netanyahu said

In the interview with Roi Katz, Netanyahu said he was concerned about economic pressure on Israel, including measures that could reach the banking system. The Times of Israel noted the question referenced broad UK sanctions on settlements announced last month. Netanyahu pointed to “currencies that get around this” and, per Ynet, mentioned digital currencies as something he is “working on”.

He gave no details. He did not name a blockchain network, a stablecoin, a token or any company, and the excerpts published so far do not explain how such a system would work. The comments came days before Israel’s October 27 election, so whether any plan is produced, and by which government, is an open question.

In the same interview, Netanyahu warned that Israel should not count on continued US military aid. “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,” he said, as quoted by The Jerusalem Post. He also said he disagreed with Bank of Israel Governor Amir Yaron’s warnings about the growing defense budget.

Israel’s existing crypto groundwork

Crypto Briefing pointed out that some infrastructure already exists. It reported that regulators approved BILS, a shekel-backed stablecoin on Solana, in April 2026, and that the Bank of Israel updated Directive 411 in October to make it easier for banks to handle funds linked to virtual currencies. Netanyahu did not refer to either.

A stablecoin and clearer bank rules are a long way from a parallel financial system. Sanctions usually bite at the points where money moves between crypto and the banking world, such as exchanges, banks and payment providers, and public blockchains keep a transparent record of transfers. A blockchain on its own does not remove those pressure points.

What it means for traders

• Narrative, not a catalyst yet. A sitting head of government calling blockchain a tool for financial resilience is notable, but there is no plan, budget or named network. Treat any related token pumps with caution.
• Watch the follow-through. The things to track are whether a plan is published, whether it survives the election, and whether it names specific chains, stablecoins or bank partners.
• Sanctions talk raises compliance questions. Exchanges serving Israeli users and shekel stablecoin activity could face extra scrutiny if sanctions expand. Check how your platform handles regional restrictions. See our exchange comparison, our testing method, and the reviews of BingX and OKX.

Not financial advice.

Related reviews

• Bingx review
• Okx review

Sources

• The Jerusalem Post: Benjamin Netanyahu warns of banking sanctions, plans alternatives
• The Times of Israel: Netanyahu: Israel needs to prep 'alternate economy' to circumvent any global sanctions
• Ynet: 'Get used to it': Netanyahu warns US military aid will end, eyes blockchain to bypass
• Crypto Briefing: Netanyahu seeks blockchain plan to counter potential financial sanctions

News is for information only and is not financial advice. More crypto news