Bank of Israel Says Crypto Cannot Bypass Potential Sanctions
(MENAFN) The Bank of Israel said Saturday that cryptocurrencies cannot provide a way around potential economic sanctions, responding to Prime Minister Benjamin Netanyahu's proposal to develop alternative financial arrangements, according to reports.
The central bank issued its response after Netanyahu suggested during a Friday interview with an Israeli business channel that cryptocurrencies could form part of contingency measures against possible economic and banking restrictions.
Cryptocurrencies “cannot be used as a route for bypassing sanctions,” the bank stated, according to reports.
“The right thing for Israel’s economy is preserving the economic relationships with our principal trade partners and focusing on preventing sanctions and their negative influence on the economy,” the bank said.
The institution emphasized that addressing the risk of sanctions falls under the responsibility of the country's political leadership. It called for measures to prevent restrictions from being imposed and to reduce their potential economic impact.
Netanyahu had voiced concerns about the possibility of Israel facing financial and banking sanctions, explaining that he had instructed officials to develop contingency plans that included the use of cryptocurrencies.
He also cautioned that US financial assistance could be discontinued and Washington's approach toward Israel could shift after President Donald Trump leaves office.
The central bank issued its response after Netanyahu suggested during a Friday interview with an Israeli business channel that cryptocurrencies could form part of contingency measures against possible economic and banking restrictions.
Cryptocurrencies “cannot be used as a route for bypassing sanctions,” the bank stated, according to reports.
“The right thing for Israel’s economy is preserving the economic relationships with our principal trade partners and focusing on preventing sanctions and their negative influence on the economy,” the bank said.
The institution emphasized that addressing the risk of sanctions falls under the responsibility of the country's political leadership. It called for measures to prevent restrictions from being imposed and to reduce their potential economic impact.
Netanyahu had voiced concerns about the possibility of Israel facing financial and banking sanctions, explaining that he had instructed officials to develop contingency plans that included the use of cryptocurrencies.
He also cautioned that US financial assistance could be discontinued and Washington's approach toward Israel could shift after President Donald Trump leaves office.
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