Survey: 51% of Israelis Show Strong Interest in Digital Shekel CBDC

Survey Shows Strong Support for Digital Shekel Among Older Israelis, with 51% Overall Interest in CBDC

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  • 51% of Israeli respondents showed significant interest in a digital shekel CBDC, with strongest support among older demographics.
  • Cryptocurrency owners demonstrated higher acceptance (69%) of the CBDC compared to non-crypto owners (50%).
  • The central bank design prioritizes privacy while maintaining direct holdings with the central bank.
  • Primary user concerns centered on Cybersecurity risks and accessibility for elderly populations.
  • Israel is considering offering a 3.5% interest rate on digital shekel holdings to promote banking competition.

The Bank of Israel has revealed surprising demographic trends in its latest digital shekel survey, with older citizens showing stronger support for the proposed central bank digital currency (CBDC) than their younger counterparts.

The comprehensive two-phase study found that 51% of participants expressed high or intermediate interest in the digital shekel, with extreme opinions dominating the responses. A remarkable 21% of respondents gave the initiative their highest possible rating, while 16% indicated minimal interest.

Contrary to common assumptions about cryptocurrency enthusiasts, individuals with prior crypto exposure showed significantly higher acceptance of the CBDC (69%) compared to those without crypto experience (50%). This suggests a more nuanced relationship between traditional crypto adoption and CBDC acceptance than previously theorized.

Age demographics revealed unexpected patterns, with 64% of respondents aged 60 and above showing strong interest, compared to just 43% among the 18-29 age group. The survey also identified a notable technology literacy gap, with tech-savvy participants showing 68% interest versus 43% among less technically oriented respondents.

The proposed digital shekel architecture emphasizes privacy protection through a hybrid model. Users would access the currency via payment providers while maintaining direct holdings with the central bank, which would not have access to personal information. This structure aims to balance accessibility with privacy concerns.

Respondents identified usability and convenience as primary advantages, while cybersecurity threats emerged as the leading concern. The Bank of Israel is considering implementing a 3.5% interest rate on digital shekel holdings, making it one of the few central banks globally to consider CBDC remuneration at launch.

The timing of Israel’s CBDC development appears increasingly significant, especially as the European Union progresses with its digital euro initiatives. While U.S. CBDC plans have been delayed indefinitely, Israel’s strategic positioning suggests a careful alignment with global financial digitization trends.

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