Israeli Prime Minister Benjamin Netanyahu says he has requested a plan to build an alternative economy based on blockchain and digital assets if Israel faces banking sanctions. The initiative comes amid concerns about a potential reduction in US military aid, historically worth tens of billions of shekels annually, and recent UK measures targeting Israeli settlements. Israel already has several building blocks: the shekel-backed BILS stablecoin, which runs on Solana, was approved in April 2026, while the Bank of Israel relaxed Directive 411 in October 2026 to make it easier for banks to manage funds connected to virtual currencies. Netanyahu did not specify a blockchain, stablecoin or banking partner, and such a system would still require payment networks, trade settlement, banking relationships and access to foreign currency. His announcement is primarily a political signal ahead of the elections, whose outcome will determine whether the project moves forward.
Source: Read the original article
