Israeli Prime Minister Benjamin Netanyahu has requested a plan to use blockchain to prepare for potential banking sanctions, describing it as one option for keeping Israel’s economy operating under financial restrictions. His remarks appeared in an interview published on October 23, 2026, and concerned preparations—not the launch of a payment system.
Key takeaways
- Netanyahu identified blockchain as one possible response to economic sanctions.
- Britain’s settlement measures target construction, imports and supporting services.
- UK sanctions enforcement applies equally to cryptoassets and traditional currencies.
Netanyahu seeks blockchain plan for banking sanctions
Netanyahu said Israel needed to prepare an economy capable of operating around possible restrictions on its banking system. In the interview with Roy Katz, he referred to currencies that would allow it to do so.
“You need to understand that there could be banking sanctions,” Netanyahu said in Hebrew.
Asked if blockchain offered an alternative to economic sanctions on Israel, he answered: “One of them. Certainly. And I have already asked for the plan for that to be prepared.”
The request to explore blockchain for potential banking sanctions contained no implementation details. Netanyahu identified neither the responsible office nor a timetable, and specified no stablecoin, settlement network or reserve asset.
Britain targets support for West Bank settlements
On October 19, 2026, British Foreign Secretary Ed Miliband cautioned companies against pursuing contracts for construction tied to the E1 settlement project in the West Bank, noting that Britain had put in place the authority to sanction individuals and firms taking part in illegal settlement building.
Miliband also reaffirmed Britain’s commitment to legislation barring imports from illegal settlements, alongside action against services that fund or facilitate them.
The scope of those measures differs from that of Netanyahu’s remarks: Britain’s actions concern settlement activity, while his request addressed preparation for possible banking sanctions more broadly.
UK crypto rules retain sanctions obligations
The UK Office of Financial Sanctions Implementation treats sanctions evasion involving cryptoassets the same way it treats evasion involving traditional money. Blockchain use does not provide an exemption from British sanctions rules.
In January 2026, the agency said “the use of cryptoassets to evade sanctions is treated no differently to the exploitation of traditional currencies.”
The agency said it was working alongside law enforcement bodies, regulators and blockchain analytics providers on investigations into suspected sanctions violations involving cryptoassets.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.