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Sunday, October 25, 2026
Top economists express ‘grave concern and anxiety’ over Netanyahu’s proposal to use crypto to evade potential sanctions
Add ToI as a Preferred Source on GoogleSharon Wrobel is a tech reporter for The Times of Israel
A group of 109 senior economists, business executives, and former public service officials express “grave concern and anxiety” following remarks by Prime Minister Benjamin Netanyahu that Israel should prepare for potential international sanctions on the Israeli banking system, and the use of cryptocurrencies to circumvent them.
In a joint statement, the Economists’ Forum calls the proposal “puzzling,” and warns that Netanyahu is knowingly leading Israel toward international economic boycott and isolation, which will cause “irreversible damage.”
The forum warns that the sanctions on the Israeli banking system will mean that corporations, exporters, investors, and above all, the tech sector will be unable to operate.
“Unemployment will surge, foreign investments will vanish entirely, and Israel’s global economic standing will collapse,” the forum cautions. “Beyond the catastrophic macroeconomic impact, Israeli citizens will be harmed: Israelis will not be able to use credit cards, international e-commerce platforms (such as Amazon and AliExpress) will be blocked to Israeli customers, and foreign workers will abandon the country en masse due to their inability to remit funds to their families.”
“The healthcare system will be unable to procure medical equipment and medications,” the forum adds.
Citing countries such as South Africa, Iran, and Russia that have been subject to economic sanctions, the forum notes that they have led to a decline in the standard of living and in the state’s capacity to finance defense and protect itself against its adversaries.
The forum joins the Bank of Israel, which yesterday rejected Netanyahu’s proposition, saying that cryptocurrencies “cannot be used as a route for bypassing sanctions.”
Among the signatories of the forum’s letter are Prof. Jacob Frenkel, former governor of the Bank of Israel; Prof. Zvika Eckstein and Prof. Avia Spivak, former deputy governors of the Bank of Israel; Yair Avidan, former supervisor of banks; Prof. Avraham Ben-Bassat, David Brodet, and Yarom Ariav, former Finance Ministry director generals; Prof. Manuel Trajtenberg, former head of the National Economic Council; Prof. Eytan Sheshinski and Prof. Reuben Gronau of the Hebrew University; and Prof. Itai Ater of Tel Aviv University.
The Times of Israel Community.