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Netanyahu stated that he has requested the development of a plan to utilize blockchain in order to circumvent potential banking sanctions.
He told the Israeli public that U.S. defense aid would end, and stated that Israel must prepare for "rainy days" and cannot rely solely on Trump; the current aid agreement of $3.8 billion per year will expire in September 2028.
Elliptic indicates that in its first year of operation, the Russian ruble stablecoin A7A5 transferred approximately 102 billion US dollars, but under sanctions and other pressures, its daily trading volume decreased by 96%.
Israeli Prime Minister Benjamin Netanyahu stated in an interview on Israel's Channel 10 that he has requested the development of a plan to use cryptocurrencies and blockchain networks to help Israel avoid potential banking sanctions. The interview was broadcast four days before the national elections.
Obviously, Netanyahu is quite confident that the United States will stop providing military funding to Israel. He said, "It's just a matter of time." He also told the Israeli public to accept the fact that Israel will no longer "receive billions of dollars in U.S. aid" to support its defense budget.
He said, "There may be sanctions, including banking sanctions. You must prepare an alternative economy and consider currencies that can circumvent these restrictions. I am also working on this."
One of the alternative solutions is to use cryptocurrencies and decentralized technologies.
When asked whether blockchain could be a way to circumvent sanctions, Netanyahu said, "Blockchain is certainly one of the options." He added, "I have already instructed that a plan be prepared for this purpose."
Netanyahu did not provide details about who is drafting this plan, what currency or network will be used, nor when it will be ready. If approved, Israel will join a small group of countries that have already attempted similar measures, including Venezuela, Iran, Russia, and North Korea, which have all used cryptocurrencies to transfer funds outside of U.S. intervention.
Netanyahu's blockchain plan is similar to that of Venezuelan President Nicolas Maduro, who not only formulated a plan but also designed an entire legal system around this idea.
Venezuela once used Tether and Bitcoin to sustain its oil industry, and created Petro in an attempt to move the entire economic system away from SWIFT.
Russia has also attempted a similar approach, using A7A5 – a token pegged to the ruble, issued by a payment company jointly owned with a bank of a sanctioned country. According to data from Elliptic, approximately $102 billion was transferred in transactions with this token in its first year. However, after the sanctions and a hacker attack on its main exchange, its daily trading volume dropped by 96% from its peak. Israel's largest bank, Leumi, plans to offer Bitcoin trading services through Galaxy Digital in early 2027, after obtaining approval from the Bank of Israel.
Bank sanctions mean that foreign banks refuse to process payments from the banks of certain countries, which makes it more difficult for importers to pay their suppliers and ultimately drives up prices in supermarkets.
Ynet reports that this week, more than 60 Israeli economists and former officials warned that the current measures targeting settlements in the West Bank of Jordan could spread to a broader range of economic areas and raise living costs.
In early September, the UK prohibited the import of goods from Israeli settlements and announced sanctions against individuals and companies involved in the construction of these settlements. Another 11 countries, including France and Canada, stated that they intend to limit trade related to goods from these settlements.
These pressures are related to the Gaza War. A United Nations investigation committee, which is an independent group and does not represent the United Nations itself, concluded in September 2025 that Israel was committing genocide there. In November 2024, the International Criminal Court issued arrest warrants for Netanyahu and former Defense Minister Yitzhak Galant regarding alleged war crimes and crimes against humanity in Gaza. Netanyahu has stated that Israel will not recognize these arrest warrants.
Channel 10 host Roy Katz also asked Netanyahu whether he was concerned about what might happen after Trump leaves office, even if Vice President J.D Vance takes over. Netanyahu did not mention Trump losing power, but his answer was in regards to a world without Trump.
Netanyahu said, "I can say with certainty that no president has ever treated Israel with such friendliness as Trump, and perhaps there will never be another like him. We must prepare for rainy days. I hope to achieve independence in weapons production, just as I once hoped to achieve independence in energy."
Earlier in the same interview, Netanyahu linked Israel's market to Trump. He said, "The market knows that if I win, we will move forward together with President Trump." He added, "He has said that he will only cooperate with me."
If Trump loses, Netanyahu mentioned Indian Prime Minister Narendra Modi, calling him one of the partners with whom cooperation has already been discussed.
Netanyahu said, "India, led by my friend Narendra Modi, is also discussing production cooperation with us. I won't disclose the details; I prefer to get the job done first and then take the credit."
Cryptocurrencies are not a tool that can easily evade sanctions, as blockchain is public and traceable. On July 1st, Israeli Defense Minister Ehud Barak Katz signed sanctions against 37 cryptocurrency wallets that held over 24 million shekels. Israel claims that these funds belong to the Iranian Revolutionary Guard and are used to finance Hezbollah. The head of the Defense Ministry's Counter-Terrorism Financing Unit stated, "In the field of cryptocurrencies, terrorists financing terrorism do not have any exemption rights."
Tether is the issuer of the US dollar-stabilized coin USDT. It has the capability to freeze any wallet that holds its tokens. In April, the company collaborated with US authorities to freeze $344 million, and in July, following US sanctions, it froze another $131 million from wallets associated with Iran's Central Bank and armed forces.
Israel will hold a vote on October 27, and the current U.S. military aid agreement will expire in September 2028, just before the next U.S. presidential election.
