Are Israelis interested in a digital shekel?

The Bank of Israel published a study today (Monday) showing that most Israelis show a medium to high level of interest in possessing a national digital currency or digital shekel - with the highest interest shown among the older generations.

The study, conducted by Professor Ruth Flato-Shinar, Dr. Libby Maman, Accountant-Adv. Lilach Shema Zlatokrilov, and Dr. Nir Yaakobi, aimed to examine how interested Israelis would be in a digital shekel and what features of such a currency would make it more attractive to them.

The study found that a slight majority of Israelis, 51.57% demonstrated either a high degree of interest (34%) or a medium-high degree of interest (17%) in using a digital shekel.

The study, which asked respondents what advantages they saw in a digital shekel, showed that innovation, reliability of use and of the Bank of Israel, and protection against fraud and system glitches were major factors in their desire to use a digital shekel.

On the other hand, respondents expressed concern regarding information security and hacking and ease of use, as well as the currency not being accessible to certain groups.

Unlike other countries, such as the United States, Israelis did not note concern about privacy as a major worry. In the United States, many Republican leaders have opposed the issuance of a digital currency on the grounds that it can be used to control populations and be used to control people's behavior, as anyone who acts out of line could easily have their digital assets seized or frozen for any number of reasons.

The Bank of Israel study found that, unlike in other countries, interest in a digital currency actually goes up with age, with the highest degree of interest being among those aged 40 and up. While educational level does not affect interest, income levels do, and the wealthier the respondent, the greater the interest in a digital shekel.

Secular Israelis were also the likeliest to be interested in a digital shekel, while Haredi Israelis were the least likely to be interested.