Netanyahu is facing mounting criticism from economists, political rivals and Israel’s central bank after proposing cryptocurrency as a possible means of circumventing international sanctions, as growing diplomatic pressure over the Israeli regime’s policies threatens its economic ties with traditional allies.

In an interview with Israel’s Channel 10 on Friday, Netanyahu said he was preparing for a scenario in which broader sanctions were imposed on Israel, raising concerns about the economic consequences of its increasingly strained international relations.

Last month, Britain, France and Canada announced plans to block imports from Israeli settlements in the occupied West Bank, marking another step against the Israeli regime’s settlement policy and underscoring its growing diplomatic isolation.

“There could be sanctions, and sanctions on banks so you need to set up a bypass economy,” Netanyahu said. “You know, there are currencies that can bypass (sanctions). We are also working on that.”

Asked whether he was referring to cryptocurrency, Netanyahu replied: “Very true, very true,” adding that blockchain technology was another possibility.

The proposal drew an unusually sharp rebuke from the Bank of Israel, which said cryptocurrencies could not provide a reliable route around sanctions and urged political leaders to focus on preventing measures that could further damage the economy.

“The right course for Israel’s economy is to preserve our economic relations with our main trading partners, and to focus on preventing sanctions and their negative impact on the economy,” it said.

Meanwhile, Netanyahu continued defending his record on Sunday, urging voters to support him in the election.

The growing criticism intensified on Sunday, when more than 100 economists, including former Bank of Israel officials, former central bank governor Jacob Frenkel and several Nobel laureates, signed a letter warning of the consequences of Netanyahu’s proposal.

The economists said the plan could trigger higher unemployment, a decline in foreign investment and a collapse in Israel’s international economic standing, highlighting the risks facing an economy increasingly exposed to diplomatic and commercial pressure.

“As we have seen in countries that have suffered similar sanctions, …, the living standards of Israeli citizens would plummet dramatically, and the state’s ability to finance its security and defend itself against its enemies would be severely damaged,” the letter read.

The signatories also accused Netanyahu of steering Israel toward international isolation while offering an inadequate response to the economic threat.

“Netanyahu is knowingly leading ... Israel toward boycott and international economic isolation, and all he has to offer the Israeli economy is a puzzling solution, one accepted in criminal organizations, that will not help in the slightest.”

Political rivals turn on Netanyahu

The dispute has also exposed divisions within Israel’s political establishment, with Netanyahu’s rivals using the cryptocurrency proposal to challenge his economic record and question his handling of the regime’s international position.

Gadi Eisenkot, Netanyahu’s main rival in Tuesday’s election, called the plan “madness” and warned that the proposed “BibiCoin policy” could drive companies abroad and undermine national security.

Opposition leader Yair Lapid also attacked Netanyahu’s election promises, warning that his policies could leave Israelis facing severe economic hardship.

The criticism comes as the Israeli regime faces mounting scrutiny over its policies, including the war and genocide in Gaza, the occupation of Palestinian territory and settlement expansion, all of which have contributed to tensions with international partners and renewed pressure over its economic relations.

The dispute over cryptocurrency has brought those concerns into Israel’s domestic political debate, with economists, central bank officials and opposition figures raising different objections to Netanyahu’s approach.

Opinion polls point to a potential stalemate in Tuesday’s election, with neither Netanyahu’s ruling coalition nor an opposition alliance securing a governing majority in parliament.