# Netanyahu proposal for blockchain-based economy > Live situation record from CLSTR: https://clstr.news/situations/netanyahu-proposal-for-blockchain-based-economy > Updated: 2026-10-26T05:00:00.000Z. Sources: 96. Developments: 3. Israeli Prime Minister Benjamin Netanyahu has proposed the development of an alternative economic framework utilizing blockchain technology and cryptocurrencies. The goal of this proposal is to mitigate the potential impact of international banking sanctions and prepare the nation for possible economic isolation. During an interview with Channel 10, Netanyahu stated he had requested a plan to utilize these technologies to maintain financial flows if conventional banking channels are restricted. However, the Bank of Israel formally rejected the idea, stating that digital assets do not provide a viable method for circumventing sanctions and that the economy is better served by maintaining strong relationships with major trading partners. The proposal has met significant domestic opposition. Over 100 economists, including Nobel laureates and former central bank officials, signed a letter describing the plan as “useless” and warning it could lead to higher unemployment and a collapse in foreign investment. Political opposition leaders, including Gadi Eisenkot, have characterized the move as a threat to national security regarding foreign investment and international payments. In a recent development, Netanyahu has instructed officials to prepare for the possibility that United States military aid may cease, describing the potential end of such support as “only a matter of time.” This directive includes orders to develop plans to mitigate the impact of economic and banking sanctions through alternative financial mechanisms, including blockchain technology. These shifts occur amid growing international pressure and changing public opinion in the United States, particularly among younger demographics. ## Claims - Benjamin Netanyahu requested a plan to use blockchain and cryptocurrency to counter potential banking sanctions. (corroborated by 8 sources) - The Bank of Israel rejected the use of cryptocurrencies to circumvent sanctions. (corroborated by 7 sources) - The UK, France, and Canada have announced or pledged restrictions on trade with Israeli settlements. (corroborated by 5 sources) - More than 100 economists and former officials signed a letter opposing the crypto plan. (corroborated by 3 sources) - Netanyahu responded to the Bank of Israel by saying he would do what he believes is best. (corroborated by 3 sources) - Gadi Eisenkot called the crypto plan a threat to national security. (corroborated by 2 sources) - Netanyahu stated that US military aid should no longer be considered guaranteed in the long term. (single source) - The current US military assistance agreement is set to expire in 2028. (single source) ## Timeline ### 2026-10-26: Israel's Bank of Israel rejects Netanyahu's crypto sanctions plan The Bank of Israel has rejected Prime Minister Netanyahu's plan to use blockchain and crypto to bypass potential banking sanctions, drawing criticism from over 100 economists ahead of national elections. 10 sources. https://clstr.news/cluster/netanyahu-proposes-using-blockchain-to-bypass-potential-sanctions ### 2026-10-25: Netanyahu prepares Israel for potential loss of US military aid Prime Minister Benjamin Netanyahu has ordered preparations for potential US military aid cuts, including exploring blockchain technology to counter possible economic and banking sanctions. 2 sources. https://clstr.news/cluster/netanyahu-prepares-israel-for-potential-loss-of-us-military-aid ### 2026-10-23: Netanyahu proposes blockchain economy to bypass potential sanctions Prime Minister Benjamin Netanyahu has proposed using blockchain and cryptocurrency to create an alternative economy to bypass potential international banking sanctions, a plan rejected by the Bank of Israel. 86 sources. https://clstr.news/cluster/netanyahu-explores-blockchain-as-alternative-to-potential-banking-sanctions --- Cite as: Netanyahu proposal for blockchain-based economy. CLSTR, https://clstr.news/situations/netanyahu-proposal-for-blockchain-based-economy