The Bank of Israel said cryptocurrency cannot be used to circumvent sanctions, publicly pushing back on Prime Minister Benjamin Netanyahu’s discussion of financial contingencies should Israel face banking or economic restrictions. The position, reported Oct. 24 by Ynetnews and corroborated by Anadolu Agency, places Israel’s access to international financial institutions and trading partners at the center of a political debate over digital assets.

Netanyahu had raised the prospect of preparations for possible sanctions in televised comments a day earlier, with cryptocurrency discussed as one potential option. There is no indication in the reports that sanctions are imminent or certain. But the central bank’s response addresses a…