Bank of Israel: Cash Remains Crucial for Emergencies Despite Digital Payment Growth
Translated & summarized from Alarab by baba
A Bank of Israel report shows cash circulation growth has slowed to 2% annually, down from 7%, as digital payments rise. However, cash remains essential for emergencies and preferred by many Israelis for its ease of use. The bank is committed to maintaining both cash availability and developing digital payment options.
The story in 5 lines · by baba
- Cash remains a crucial payment method in Israel, especially for emergencies, according to the Bank of Israel.
- Growth in cash circulation has slowed to 2% annually, significantly down from 7% in previous years.
- The shift towards digital payments is accelerating among the Israeli public.
- Cash offers immediate liquidity and facilitates transactions during technological disruptions.
- The Bank of Israel is balancing the need for cash availability with the development of digital payment systems.
A new report from the Bank of Israel highlights a significant shift towards digital payments, with cash circulation growth slowing to an average of 2% annually between 2024 and 2025, down from 7% between 2021 and 2023. Despite this trend, the report emphasizes that cash remains a primary and preferred payment method for a large segment of the Israeli public due to its ease of use and immediate liquidity for small businesses.
The central bank stressed the strategic importance of cash in ensuring economic continuity during emergencies, such as power outages, communication network failures, or cyberattacks, as it allows transactions without reliance on technological infrastructure. Yoram Cohen, Director General of the Bank of Israel, stated that the bank is pursuing a dual approach: ensuring cash availability and accessibility while simultaneously developing and promoting additional digital payment methods to offer consumers more choices.
Limor Goldstein, Director of the Cash Department, reaffirmed the bank's commitment to a secure and reliable cash system, calling cash a cornerstone of payment system resilience. She assured that the department continues to work diligently to provide cash services and meet demand nationwide, in both routine times and during challenges and emergencies.
