The Bank of Israel has issued a statement clarifying that digital currencies cannot be utilized to circumvent international sanctions, effectively pushing back against recent proposals linked to Prime Minister Benjamin Netanyahu’s administration. The central bank emphasized that maintaining the integrity of Israel’s financial system and preserving international economic ties is paramount, noting that the global financial infrastructure is not designed to accommodate such evasion tactics.

In response to the proposal, opposition figures have intensified their criticism of the Prime Minister. Gadi Eisenkot, a prominent opposition member, accused Netanyahu of actively dismantling the Israeli economy through reckless policy suggestions. The opposition argues that even floating the idea of using crypto to bypass sanctions could damage Israel's standing with international financial institutions and key allies. While the Bank of Israel focused its critique on the technical and economic impossibility of the plan, opposition leaders framed the proposal as a broader symptom of poor governance and a threat to Israel's long-term economic security. The Prime Minister’s office has not yet provided a detailed rebuttal to the central bank's technical assessment, leaving the debate centered on the potential diplomatic and fiscal fallout of the suggestion.