The Bank of Israel said Saturday that cryptocurrencies cannot be used to circumvent potential economic sanctions in response to Prime Minister Benjamin Netanyahu’s proposal to prepare alternative financial arrangements, according to a media report.

The public broadcaster said the central bank’s response followed Netanyahu’s interview on Friday with an Israeli business channel, during which he proposed using cryptocurrencies as part of contingency plans for possible economic and banking sanctions.

The bank said cryptocurrencies “cannot be used as a route for bypassing sanctions,” according to the broadcaster.

“The right thing for Israel’s economy is preserving the economic relationships with our…