Jerusalem, 25 October, 2026 (TPS-IL) — More than 100 prominent Israeli economists, business leaders and former senior officials warned Sunday that Prime Minister Benjamin Netanyahu’s proposal to use cryptocurrency to bypass potential Western banking sanctions could leave Israel economically isolated, damaging businesses, employment, investment and essential public services.

The 109 signatories, organized under the Economists’ Forum, issued a joint letter expressing “grave concern and anxiety” over Netanyahu’s suggestion that Israel prepare alternative financial channels should foreign governments impose restrictions on its banking system.

The economists argued that the proposal fails to address the underlying threat: the deterioration of Israel’s economic relations with its major international partners.

“The Prime Minister’s words indicate a fundamental lack of understanding” of the implications of Israel’s declining international standing, the letter said. It accused Netanyahu of knowingly steering the country toward economic isolation and warned of “irreversible damage.”

Netanyahu raised the possibility of banking sanctions in a Friday interview with Channel 10’s economic network. He said he had instructed his advisers to develop a plan involving cryptocurrencies and blockchain technology, which enables transactions to be recorded on decentralized digital networks.

The remarks came amid mounting diplomatic pressure on Israel. Britain and 11 other Western countries recently announced sanctions targeting goods from Israeli communities in Judea and Samaria, citing attacks by Israelis against Palestinians and expanded construction approved by Netanyahu’s government.

The Bank of Israel publicly opposed Netanyahu’s proposal on Saturday, arguing that digital currencies would not provide a viable workaround for international financial restrictions.

Cryptocurrencies “cannot be used as a route for bypassing sanctions,” the central bank said.

It urged the government to prioritize preventing such measures and maintaining commercial ties with Israel’s main trading partners. Netanyahu acknowledged the criticism in a subsequent interview with Channel 14, saying, “I hear the resistance; I am taking it into account.”

He added: “I listen, but I do what I think [is best].”

The Economists’ Forum warned that sanctions on Israel’s banking system could make it difficult or impossible for companies to conduct international transactions, threatening exporters, investors and the high-tech industry. A collapse in foreign investment and a sharp rise in unemployment could follow, the signatories said.

The effects could also reach households and public services. Israelis might lose access to credit cards and international shopping platforms such as Amazon and AliExpress, while foreign workers could leave if they were unable to send earnings to relatives overseas.

Hospitals and other healthcare providers could face obstacles importing medicines and medical equipment, the letter warned.

The economists also pointed to South Africa, Iran and Russia as examples of countries that have faced international sanctions. Such restrictions, they argued, can lower living standards and weaken a country’s ability to fund its military and defend itself.

The letter was signed by several former senior figures in Israel’s financial establishment, including former Bank of Israel Governor Jacob Frenkel, former deputy governors Zvika Eckstein and Avia Spivak, and former banking supervisor Yair Avidan.

Other signatories included former Finance Ministry director generals Avraham Ben-Bassat, David Brodet and Yarom Ariav; Manuel Trajtenberg, a former head of the National Economic Council; and academics from the Hebrew University of Jerusalem and Tel Aviv University.