109 Economists and Business Leaders Warn Netanyahu's Crypto Sanctions Plan Could Devastate Israel's Economy

A group of 109 economists, business leaders, high-tech entrepreneurs and former senior public officials has issued a sharply worded statement voicing "deep anxiety and concern" over Prime Minister Benjamin Netanyahu's conduct. They warned that Israel's economy could suffer irreversible damage if international sanctions are imposed.

The letter came after an interview in which Netanyahu said he was not worried about sanctions and that US military aid "is not something that will last forever and will eventually end." He also said he had asked for a plan to get around banking sanctions using cryptocurrencies and blockchain technology.

The signatories said the remarks showed "a fundamental lack of understanding and ignorance in the face of Israel's collapsing standing in the international arena." They accused Netanyahu of knowingly steering the country toward an international economic boycott and isolation, offering only "a bizarre solution commonly used by criminal organizations that will be of no help whatsoever."

According to the letter, restrictions on the banking system would bring soaring unemployment, the complete disappearance of foreign investment and paralysis of the high-tech sector, the economy's main growth engine. The authors also pointed to effects on daily life: people could lose the ability to use credit cards and access online platforms such as Amazon and AliExpress, foreign workers could leave, and the healthcare system would struggle to buy medicines and medical equipment. They compared the scenario to South Africa, Iran and Russia, and warned of a sharp fall in living standards and serious harm to Israel's ability to finance its defense needs.

Among the signatories are two Nobel laureates, Prof. Joel Mokyr (Economics) and Prof. Aaron Ciechanover (Chemistry). Others include former Bank of Israel governor Prof. Jacob Frenkel, former deputy governors Prof. Zvi Eckstein and Dr. Nadine Baudot-Trajtenberg, and former bank supervisors Yair Avidan and Rony Hizkiyahu. Several former Finance Ministry directors-general signed as well, among them Yarom Ariav, Prof. Avi Ben-Bassat, David Brodet, Haim Shani and Prof. Manuel Trajtenberg, along with former chief economist Shira Greenberg and former budget director Udi Nisan.

The business world was represented by figures such as CyberArk founder Alon Cohen, Check Point co-founder Marius Nacht, G City founder Chaim Katzman, BIG Shopping Centers CEO Hai Galis and chairman Eitan Bar Zeev, entrepreneur Gigi Levy-Weiss, and Fireblocks co-founders Idan Ofrat, Dov Moran and Roy Vermus.

The Bank of Israel had already weighed in over the weekend, stating that "cryptocurrencies cannot serve as a means of circumventing sanctions on Israel." It said the right course was to preserve economic ties with the main trading partners and concentrate on preventing sanctions. Netanyahu answered in an interview with Channel 14: "I thank the Bank of Israel for its advice, but I do what I think is right."

Business groups also rejected the idea. Galit Miran, CEO of the Israel-America Chamber of Commerce, cautioned against "adopting financial models characteristic of isolated and excluded countries," saying they could damage investor confidence and Israel's credit rating. The Manufacturers Association of Israel said the economy rests on free trade and the free movement of capital, and that protecting them is the only way to ensure resilience.

The dispute has become a central theme of the election campaign, which ends on Tuesday. Yashar party chairman Gadi Eisenkot said that if Netanyahu continues, "there will be no savings, no international investments," and people would be unable to pay by credit card online or abroad. Opposition leader Yair Lapid said Netanyahu was admitting that a re-elected government would mean the end of military aid and sanctions, bringing "insane price increases and irreparable damage." B'Yachad chairman Naftali Bennett said the vision meant the destruction of Israeli high-tech and placed Israel "in the same category as Iran, North Korea, and Russia."