The Bank of Israel has publicly rejected Prime Minister Benjamin Netanyahu's proposal to use cryptocurrencies to circumvent potential international sanctions.

In a statement released on Saturday, the Bank of Israel said that cryptocurrencies "cannot serve as a means to circumvent sanctions imposed on Israel," emphasizing that the correct approach for the Israeli economy is to maintain economic relations with major trading partners and focus on preventing sanctions and their negative effects. Netanyahu had previously stated in an interview on Friday that he had requested a plan to utilize cryptocurrencies and blockchain networks to bypass sanctions. On Sunday, over 100 economists, including former Bank of Israel Governor Jacob Frenkel, signed a joint letter warning that the plan would lead to increased unemployment and a collapse in foreign investment.