Israeli Prime Minister Benjamin Netanyahu said he had requested a plan to prepare for possible economic and banking sanctions, naming blockchain as one option for bypassing restrictions.
In a Channel 10 interview published Oct. 23, Netanyahu told interviewer Roy Katz that Israel should prepare for economic measures that could affect its banks. He said Israel should prepare an economy that could bypass restrictions but did not identify a currency or system. Asked whether blockchain might be part of the response, he described it as one possibility and said he had requested a plan. He did not identify who would prepare it or specify a timetable or system. The interview did not announce a decision to adopt cryptocurrency or launch a blockchain network.
Recent U.K. measures have focused on settlement-related activity. On June 9, 2026, the U.K. announced sanctions against six entities and one individual over what the government described as their roles in supporting or carrying out settler violence in the occupied West Bank. It said the designations could bring asset freezes and, where applicable, travel bans and disqualification from company directorships.
On Sept. 8, the U.K. announced plans to restrict imports of goods from illegal settlements and create sanctions focused on settlements and their expansion. The Foreign Secretary said the planned measures would apply to settlements, not Israel, and that the U.K. would continue to support trade with Israel within the 1967 lines. These actions concern settlements and do not establish that Israel’s banking system faces sanctions.
The Bank of Israel is separately examining whether to issue a Digital Shekel central bank digital currency (CBDC). In its May 13, 2026, progress report, it said a recommendation on whether to issue one was expected to go to the governor toward the end of 2026. Netanyahu did not link his sanctions planning to the Digital Shekel project.
