Israeli Prime Minister Benjamin Netanyahu (베냐민 네타냐후) has publicly raised the possibility of using blockchain and cryptocurrencies as a way to respond to possible international financial sanctions.

On Oct. 25, blockchain outlet Cointelegraph reported that Netanyahu, ahead of a general election, said Israel is reviewing related technology to reduce the shock the Israeli economy could face from potential sanctions.

In an interview on Oct. 24 with Channel 10's economic network, Netanyahu cited blockchain as a way to bypass potential banking sanctions. He said, "Blockchain is an alternative to sanctions," and described it as a "national strategic tool." With the remarks coming at a sensitive time ahead of the election, blockchain and cryptocurrencies appear to be emerging as an Israeli election issue.

The backdrop is sanction pressure from the West. The outlet reported that some countries have already announced sanctions targeting products from Israeli settlements in the West Bank, and last month concerns were also raised that such measures could be expanded to Israel proper. Netanyahu's remarks are being read as a message that he will address the possibility of financial sanctions as an issue of economic security.

Political and monetary authorities responded immediately. Candidates seeking to replace Netanyahu in the Oct. 27 general election strongly criticised his idea. Gadi Eisenkot (가디 아이젠코트), leader of the Yashar Party, wrote on X, formerly Twitter, that the "BibiCoin vision is a threat to national security." The term is not an actually issued cryptocurrency but a mocking label used by the opposition to criticise the prime minister's financial policy, highlighting that viewing crypto as a tool to evade sanctions is itself dangerous.

Israel's central bank also drew a line in an official statement. The Bank of Israel said, "Cryptocurrencies cannot be used as a route to bypass sanctions." It effectively made clear its view that, at the level of the financial system, cryptocurrencies would be hard-pressed to replace existing banking networks, capital markets and external payment structures.

The industry offered a similar response. Ben Samocha (벤 사모카), founder of Israeli crypto outlet CryptoJungle, said crypto and blockchain-based solutions are not tools for bypassing sanctions. Citing U.S. Treasury measures against Iran, he said blockchain analytics can track flows of illicit funds, cut off entry points into fiat currencies and even enable asset freezes. He added that Israel's economy is not structured to bypass sanctions using cryptocurrencies.

Local media and civil society reactions were also negative. Participants at anti-government protests in Tel Aviv voiced concerns about a crypto-based economic plan, and media columns also criticised the idea, saying digital assets may be able to shift value outside some traditional financial channels but cannot serve as a substitute for a national financial system. They also pointed to limits, including that foreign companies cannot be made to violate sanctions against Israel and that crypto cannot replace bank lending or the functions of international capital markets.

The issue is spreading beyond a simple debate over the use of technology into an argument over whether blockchain and cryptocurrencies can be seen as tools to defend the national economy. Ahead of the general election, Netanyahu has elevated digital assets to an economic security agenda, while the central bank and the industry are questioning effectiveness on the grounds of traceability and the limits of institutional finance. This is expected to make it a key point to watch whether the Israeli government will actually change its blockchain policy stance after the election or whether it will remain a political remark.