Netanyahu seeks blockchain plan to bypass potential banking sanctions

Israeli Prime Minister Benjamin Netanyahu has asked for a plan to utilize blockchain and cryptocurrency to help the country navigate potential banking sanctions. He made these comments during an interview on Israel's Channel 10, which aired four days before the national election scheduled for October 27. Netanyahu stated that he is working on preparing an alternative economy and considering currencies that can circumvent restrictions, identifying blockchain as one of the primary alternatives. He did not elaborate on who is drafting the plan, what specific currency or network it would use, or when it would be ready.

The Prime Minister warned that U.S. defense aid will end and that Israel must prepare for a scenario beyond President Trump. He noted that the current U.S. military aid deal expires in September 2028, but he stated it is only a question of time before the United States stops providing military funding. Netanyahu also warned that there could be sanctions, including banking sanctions, against Israel. He stated that if he wins the upcoming election, Israel will proceed together with President Trump. Additionally, he named India's Prime Minister Narendra Modi as a partner already discussing cooperation with Israel in production.

On July 1, Defense Minister Israel Katz signed sanctions orders on 37 crypto wallets holding more than 24 million shekels. In April, Tether froze $344 million in cooperation with U.S. authorities. Meanwhile, Russia's ruble stablecoin A7A5 moved about $102 billion in its first year before sanctions and other pressure cut its daily volume by 96%. In the domestic financial sector, Bank Leumi, Israel's largest bank, plans to offer Bitcoin trading in early 2027 through Galaxy Digital, pending Bank of Israel approval. International legal actions have also affected the political landscape, with the International Criminal Court issuing arrest warrants for Netanyahu and former defense minister Yoav Gallant in November 2024 over alleged war crimes and crimes against humanity in Gaza. A UN commission of inquiry concluded in September 2025 that Israel was committing genocide in Gaza.