Netanyahu Weighs Crypto to Bypass Potential Sanctions Ahead of Israeli Election

Israeli Prime Minister Benjamin Netanyahu said he is exploring cryptocurrency as a means to circumvent potential financial sanctions on Israel, drawing sharp criticism from opposition leaders ahead of the Oct. 27 election. "We need to prepare ways to evade banking sanctions through an alternative economic system," Netanyahu told Israel's Channel 10, confirming he was referring to cryptocurrencies that can bypass restrictions. Opposition leader Yair Lapid said the proposal aligns Israel with "countries like Iran, Russia, and Venezuela," while former Finance Minister Avigdor Liberman accused Netanyahu of preparing a "sanctions-bypassing economy" rather than preventing isolation. The remarks follow a pledge last month by 12 major countries led by the UK to take coordinated measures against Israeli settlements in the West Bank. Former Bank of Israel supervisor Yair Avidan warned that foreign banks could cease correspondent services to Israeli counterparts, severing international economic activity. Netanyahu also cautioned that decades of US military aid — currently $3.8 billion annually through 2028 — will eventually end.