Israeli Prime Minister Benjamin Netanyahu has requested a blockchain plan as Israel prepares for the possibility of international banking sanctions, confirming the initiative during an October 23 interview with Israel's Channel 10 economic network. He indicated that cryptocurrency could serve as alternative payment infrastructure if traditional banking channels come under restriction, though existing financial restrictions and compliance obligations would continue to apply.

Netanyahu said Israel should develop alternative financial arrangements if restrictions disrupt its banking system. He also cautioned that the country could eventually lose substantial U.S. military assistance, citing Israel's growing defense spending requirements.

Blockchain Plan Confirmed in Television Interview

Speaking to interviewer Roi Katz, Netanyahu said Israel must prepare for the possibility of restrictions on its banking system, adding that the government needed options for maintaining economic activity if foreign governments imposed broader financial measures.

Katz asked whether blockchain technology could offer one of those options. Netanyahu confirmed that his government was examining the technology and had already requested a plan. He also referred to digital currencies while discussing alternative financial arrangements. The interview also covered defense spending and Israel's upcoming elections.

UK Settlement Measures Add Context to Sanctions Concerns

Netanyahu's remarks followed new British measures concerning Israeli settlements in the occupied West Bank. In September 2026, the UK government announced plans to prohibit imports of settlement goods and expand its ability to sanction individuals and companies supporting settlement expansion.

The British government said the planned rules would cover certain services connected with settlement activity, including financing and construction. A House of Commons briefing also stated that Britain intended to continue supporting trade with Israel outside those restrictions. British officials said further implementation details would follow.

No Specific Digital Asset Named

Netanyahu did not identify Bitcoin, a stablecoin, or any other digital asset as part of the proposed response. He also provided no launch date, budget, or framework for government supervision.

Blockchain networks record transactions through shared digital ledgers. Some support transfers of digital assets without using the same infrastructure as traditional bank payments. However, different networks operate under different technical arrangements, and cryptocurrency services remain subject to financial laws and restrictions.

The announcement therefore leaves several questions unanswered, including which government agency would manage the work and whether any proposal would reach implementation. Any follow-up that names an agency, budget, or supervisory framework would mark the first step beyond the interview remarks.

U.S. Military Assistance Could Eventually End

The prime minister also told Israelis to prepare for a future without American military aid. He said previous assistance packages worth tens of billions of dollars should not form the basis of Israel's long-term defense planning. Netanyahu gave no date for the expected change.

The United States and Israel signed a ten-year security assistance agreement in 2016. The arrangement covers fiscal years 2019 through 2028 and provides for $38 billion in military aid, subject to congressional appropriations. That amount includes $33 billion in military financing and $5 billion for missile defense programs — the kind of prior package Netanyahu said should not anchor long-term defense planning.

Netanyahu also discussed greater domestic defense production during the interview, saying the government had allocated an additional 400 billion shekels for defense spending over the coming years.

This article for informational purposes only and does not constitute legal or financial advice. Cryptocurrency transactions remain subject to applicable laws, regulatory requirements, and financial risks.