Can I use Minecraft redstone to teach digital circuits?
I wouldn't recommend it. There are a lot of weird quirks to redstone logic in Minecraft, and it's constrained by the mechanics of the game. In particular:


Redstone circuits must be constructed on the surface of a structure in 3D space, and the player must move around that space to work on their circuit. Building that structure will suck up a lot of time.
Many common designs for redstone logic gates rely on idiosyncratic elements of the game (e.g, pistons, hoppers, and light transmission)  which do not translate to real logic.
There is no way to "cut, copy or paste" constructions in Minecraft. Constructing large hierarchical circuits will involve a lot of repetitive work.
There are limitations on the overall size of a circuit. Beyond a certain size, it will stop working.


If you want to introduce students to digital logic, consider using a program like Logisim. It may not be quite as 'hip' as Minecraft, but it has the advantage of actually being designed for this use.