Bank of Israel Report: Cash Use Stabilizes, Remains Crucial for Economic Resilience
Translated & summarized from JDN by baba
The Bank of Israel's latest report shows a slowdown in cash circulation growth to 2% annually, as Israelis increasingly adopt digital payments. However, cash remains essential for many, especially small businesses, and is critical for economic resilience during emergencies like power outages or cyberattacks. The Bank of Israel aims to ensure continued access to cash alongside digital payment options.
The story in 5 lines · by baba
- Cash use growth in Israel slowed to 2% annually, down from 7%, due to digital payment adoption.
- Cash remains a vital payment method for a large segment of the Israeli public.
- Small businesses value cash for its simplicity, liquidity, and finality of payment.
- Cash provides essential economic resilience during emergencies like power outages or cyberattacks.
- The Bank of Israel is committed to ensuring public access to cash alongside digital options.
A special report released by the Bank of Israel indicates that while the use of digital payment methods continues to grow, cash remains a vital component of the Israeli economy, particularly for small businesses and in times of emergency. The report, based on surveys and spending diaries, found that the annual growth rate of currency circulation slowed to approximately 2% in 2024-2025, down from about 7% in 2021-2023, reflecting increased adoption of digital payments.
Despite this trend, a significant portion of the public prefers to continue using cash due to its simplicity, self-contained value, immediate settlement, and liquidity. Small business owners also value cash for its finality of payment. The report emphasizes cash's strategic role in maintaining economic resilience, especially in light of recent events, by providing a fallback system independent of technological infrastructure during power outages, communication disruptions, or cyberattacks.
Yoram Cohen, Director General of the Bank of Israel, stated that the bank is committed to ensuring cash accessibility for the public while promoting digital options, allowing consumers to choose their preferred payment method. Limor Goldstein, Director of the Currency Department, added that cash is an important payment method for many Israelis and a key element of the payment system's resilience, with her department working to meet demand, maintain the quality of currency, and bolster public confidence in the Israeli shekel.
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