Israel may need to develop an alternative economic system to circumvent international sanctions, Prime Minister Benjamin Netanyahu has said, while acknowledging growing pressure from the country’s closest ally, the United States.
“We must understand that there could be sanctions, particularly banking sanctions,” Netanyahu said during a talk show broadcast on Israel’s Channel 10 and posted online ahead of Tuesday’s elections.
“We must prepare an alternative economy capable of operating around sanctions,” he added.
Asked whether he was referring to blockchain, the decentralised technology underpinning cryptocurrencies, Netanyahu replied: “Absolutely. I have requested that such a plan be developed.”
Concerns over international sanctions
The Israeli prime minister did not specify which countries he expected might impose sanctions.
Recently, the United Kingdom and other countries imposed sanctions targeting products originating from Israeli settlements in the occupied West Bank, in response to attacks by settlers against Palestinians and the construction of new settlements, according to the report.
Netanyahu remains a close ally of US President Donald Trump. However, Israel has faced growing criticism in the United States following its devastating military campaign in Gaza, launched in response to Hamas’ attack on Israeli territory on 7 October 2023.
The Israeli prime minister has repeatedly stressed the need to reduce Israel’s dependence on American military assistance and achieve greater strategic autonomy in defence.
“It’s over. It’s only a matter of time,” Netanyahu said, acknowledging that he was concerned about Washington’s position towards Israel.
Opposition warns of economic consequences
Former centrist prime minister and current opposition politician Yair Lapid criticised Netanyahu’s remarks, arguing that they amounted to an admission of the potential consequences of another term in office.
“Netanyahu now admits, in his own words, that if his government returns to power, American military assistance will end and Israel will face sanctions that will destroy our economy, cause prices to rise uncontrollably and inflict irreparable damage,” Lapid claimed.
His comments reflected opposition concerns over the potential economic consequences of deteriorating international relations and reduced American support.
Blockchain and economic independence
Netanyahu’s remarks suggest that his government is considering blockchain-based systems and other alternative financial mechanisms as potential ways to maintain economic activity if international banking restrictions are imposed.
The Israeli prime minister has also recently threatened to resume military operations against Iran.
Iran, which has faced extensive international sanctions, has adopted cryptocurrencies and other alternative financial mechanisms in efforts to operate under those restrictions.
Netanyahu’s statements highlight concerns about Israel’s future economic resilience, its reliance on American assistance and the potential impact of further international sanctions.
Source: Athens-Macedonian News Agency (ANA-MPA)
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