{"id":2937,"date":"2025-04-10T14:17:43","date_gmt":"2025-04-10T14:17:43","guid":{"rendered":"https:\/\/digkrypton.com\/index.php\/2025\/04\/10\/israels-new-study-shows-51-of-public-is-interested-in-adopting-cbdc-digital-shekel-is-that-so\/"},"modified":"2025-04-10T14:17:43","modified_gmt":"2025-04-10T14:17:43","slug":"israels-new-study-shows-51-of-public-is-interested-in-adopting-cbdc-digital-shekel-is-that-so","status":"publish","type":"post","link":"https:\/\/digkrypton.com\/index.php\/2025\/04\/10\/israels-new-study-shows-51-of-public-is-interested-in-adopting-cbdc-digital-shekel-is-that-so\/","title":{"rendered":"Israel\u2019s New Study Shows 51% of Public is Interested in Adopting CBDC (Digital Shekel) \u2013 Is That So?"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Israel\u2019s New Study Shows 51% of Public is Interested in Adopting CBDC (Digital Shekel) \u2013 Is That So?<\/a><\/p>\n

<\/div>\n

<\/a><\/p>\n

On April 1st, at the KPMG offices in Tel Aviv, several dozen people gathered for a meeting of the \u201cCBDC IL Forum\u201d to hear representatives from academia, the Bank of Israel, and KPMG present findings from a study conducted by the Bank of Israel through \u201cRoschink\u201d research institute. The study included around 1,000 participants, and\u00a0the results were published<\/a>\u00a0on the Bank of Israel\u2019s website. In this article, I will review key points from the meeting, comment on the research published by the Bank of Israel, and share what I had said to attendees at the end of the forum meeting.<\/p>\n

<\/a>The CBDC IL Forum\u2019s meeting brochure<\/p>\n

Study: The Israeli Public\u2019s Willingness to Adopt a Digital Shekel<\/h3>\n

Dr. Nir Yaacobi from the Digital Shekel team at the Bank of Israel shared that participants in the study were randomly selected and represent all population segments. \u201cThe research institute works with these individuals, and they are paid for their participation,\u201d he said. The amount paid was not disclosed. Prof. Ruth Plato-Shinar, one of the study\u2019s authors, mentioned that the questionnaires were in a digital format. She noted that even people with very basic phones could participate, but acknowledged that those without any digital access likely did not participate and probably don\u2019t understand what a digital shekel is.<\/p>\n

Analysis of the study\u00a0document<\/a>\u00a0reveals several methodological issues:<\/h4>\n

Sampling method<\/strong>: An online panel was used, meaning participants were already enrolled in digital survey platforms\u2014potentially biasing the sample toward tech-savvy individuals and skewing attitudes about a digital currency.<\/p>\n

Sample representation<\/strong>: The random sampling underrepresented certain groups, especially Arab citizens. Reweighting was used to correct this by doubling responses of some participants, potentially compromising authenticity.<\/p>\n

Risks<\/strong>\u00a0such as loss of privacy, government overreach, and impact on cash economies may be underrepresented due to a bias toward digitally-inclined respondents.<\/p>\n

Participant dropout<\/strong>: 115 participants dropped out between the first and second questionnaires, which may indicate a selection bias\u2014those more interested in the topic stayed on.<\/p>\n

Despite efforts to ensure a representative sample, these methodological limitations may affect the study\u2019s validity.<\/p>\n

<\/a><\/p>\n

Avoiding Disclosure of Digital Shekel Risks<\/h3>\n

At the end of the meeting, I spoke critically about the partial and mainly positive information presented to study participants and the CBDC IL Forum attendees. The public wasn\u2019t exposed to potential risks and limitations of such a system, which I\u2019ve elaborated on in many of my\u00a0keynote speeches, articles and podcasts<\/a>.<\/p>\n

The following video shows that the way the digital shekel was presented to study participants was lacking. The description of the digital shekel and its system focused on the advantages, as read by Prof. Plato-Shinar at the CBDC IL forum meeting:<\/p>\n

In addition, the study does not comprehensively address potential risks for end users\u2014such as the possibility of state control over financial behavior, loss of privacy, asset seizure, use of the currency as a surveillance tool, restricted access to funds due to regulatory decisions, and more. The lack of emphasis on these risks is especially problematic for individuals concerned about government overreach and privacy violations, but also for those who are simply unaware of the potential dangers and their implications.<\/p>\n

The study does mention:<\/p>\n

Limited privacy claims<\/strong>: It is stated that \u201cthe central bank will not have access to identified information about balances and transactions in users\u2019 wallets,\u201d but also that privacy levels will be defined according to user type\u2014which implies that privacy is not absolute.<\/p>\n

Enforcement capabilities and restrictions<\/strong>: \u201cThe system will support the implementation and enforcement of restrictions\u201d on wallet balances, which could indicate the potential for usage limitations. The digital shekel is being designed with technical capabilities to impose limits on wallet balances\u2014meaning it will be possible to define how much money a person is allowed to hold in their digital wallet and monitor that in real time. Although the document does not specify who would be authorized to enforce these limitations, the mere existence of enforcement capabilities indicates a control mechanism that could theoretically allow freezes, blocks, or other restrictions on usage\u2014raising questions about financial freedom, privacy, and institutional power.<\/p>\n

Government control<\/strong>: The Bank of Israel will be \u201cthe sole authority empowered to issue and redeem the digital shekel,\u201d meaning there will be no decentralized alternatives like cryptocurrencies such as Bitcoin.<\/p>\n

Implications for Cash-Based Communities<\/h3>\n

The study does refer to the level of interest among different population groups and notes that among the ultra-Orthodox community, interest in the digital shekel is among the lowest. However, it does not explicitly discuss the consequences of transitioning to a digital currency for communities that rely heavily on cash. The digital shekel may pose a significant challenge to these groups if cash usage is eventually curtailed.<\/p>\n

Possible reasons for low interest among the Haredi (ultra-Orthodox) community:<\/p>\n

Clear preference for cash<\/strong>: Most Haredim use cash due to privacy concerns, a desire to avoid dependence on banks, and some hold traditional opposition to modern financial systems.<\/p>\n

Digital literacy gaps<\/strong>: Financial digital literacy in parts of the ultra-Orthodox community is lower than the general population.<\/p>\n

Fear of regulatory control<\/strong>: Cash offers a degree of economic independence, whereas a digital shekel may increase government control over payments.<\/p>\n

Senior Citizens<\/h3>\n

In 2023, the Israeli Internet Society\u00a0conducted a survey<\/a>\u00a0among Israelis aged 65 and older. It found that approximately\u00a030% do not use the internet at all<\/strong>, and \u201cit can be said that at least some of them have not bridged the access gap.\u201d This population segment (60+) comprises around\u00a025.3% of Israel\u2019s total population<\/strong>\u00a0(data<\/a>\u00a0from 2020). This is another example of a group whose access to technology is limited\u2014and therefore will likely also be limited in their ability to use a digital shekel.<\/p>\n

Since the study was conducted digitally, that 30% segment of this population likely was not represented in the sample. That said, only\u00a013% of the study participants were aged 60+<\/strong>\u00a0(13% in the first survey and 12% in the second), meaning people aged 60 and over were\u00a0underrepresented<\/strong>\u00a0in the sample\u2014at about half their proportion in the general population.<\/p>\n

This raises several concerns:<\/p>\n

Digital exclusion<\/strong>: A significant portion of those aged 65+ simply could not participate in the survey.<\/p>\n

Overestimated tech readiness<\/strong>: If only elderly people with digital skills participated, the study may overestimate interest among the elderly.<\/p>\n

Accessibility gaps<\/strong>: People who struggle with technology may also struggle to use the digital shekel\u2014but their perspectives were not captured.<\/p>\n

All of these factors may introduce bias that should be taken into account when interpreting the findings. To achieve a more accurate picture, the researchers could have incorporated other research methods (such as phone or in-person interviews) to reach those without digital access.<\/p>\n

What\u2019s New in the World of CBDCs<\/strong><\/h3>\n

At the meeting, Ben Benakot of KPMG Israel presented developments in the CBDC space. He noted that most countries in the world are exploring CBDC solutions at various stages, and that\u00a065 countries are in advanced research stages<\/strong>.<\/p>\n

One case study he presented was Brazil, where the central bank launched the PIX retail payment system during the COVID-19 period. It saw rapid adoption. Today, Brazil\u2019s central bank is working on DREX, a wholesale CBDC system, and has completed a\u00a0collaboration<\/a>\u00a0with Meta to enable payments via WhatsApp using PIX.<\/p>\n

Ben pointed out that no advanced Western countries have launched CBDC systems yet\u2014likely one reason the Bank of Israel is not rushing to make a decision. The Bank of Israel has previously stated it is monitoring the EU central bank as a model.<\/p>\n

<\/a><\/p>\n

Balancing the Narrative on the EU and China<\/h3>\n

In my closing statements at the CBDC IL forum meeting, I also referred to a study conducted recently in the EU with less than flattering results; This study was clearly not mentioned by any of the forum\u2019s experts. I found it important to balance the overly positive narrative and bring the following to attendees\u2019 attention:<\/p>\n

On March 12, the European Central Bank (ECB) published a\u00a0working paper<\/a>\u00a0titled \u201cConsumer Attitudes Toward CBDC,\u201d surveying approximately 19,000 respondents across 11 Eurozone countries. The report highlighted significant communication challenges that are expected to hinder adoption of the digital euro. It found that Europeans show little interest in a digital euro, strongly prefer existing payment methods, and see no real added value in a new payment system given the many alternatives.<\/p>\n

Nevertheless, the European Central Bank recently announced that it will begin the rollout of the digital euro in\u00a0October 2025<\/strong>, pending regulatory approvals.<\/p>\n

Read more about the EU\u2019s CBDC plans in my recent article, ECB Prepping the Ground for Digital Euro Launch<\/a>.<\/a><\/p>\n

Furthermore (at the CBDC IL meeting), I went on to explain that the high adoption rate of the CBDC in China is not necessarily a result of public enthusiasm, but rather of a top-down market strategy led by the central bank\u2014a \u201cIf you can\u2019t beat them, join them\u201d approach. In the early years of the e-CNY (China\u2019s CBDC), the project was considered a failure due to low adoption. Eventually, the central bank\u00a0instructed<\/a>\u00a0major retail and tech companies to integrate e-CNY into their most popular apps (DiDi, Meituan, Ctrip, WeChat Pay, and Alipay)\u2014a move that enabled wide adoption. Today, the e-CNY has about 180 million digital wallet users and a cumulative transaction volume of $1 trillion.<\/p>\n

The Trust Factor<\/h3>\n

70% of Israel\u2019s study participants expressed trust in the Bank of Israel. At the meeting, Ben Benakot of KPMG commented on the trust issue: \u201cIf we don\u2019t trust the government, this becomes a problematic issue, because theoretically, CBDCs give the state more data.\u201d Benakot noted that although the Bank of Israel is designing the system so that it won\u2019t have direct access to user information\u2014only authorized payment providers will\u2014there\u2019s no guarantee that a future government won\u2019t change the system and gain direct access to accounts and personal data.<\/p>\n

He also mentioned that today, for example, the Israeli tax authority already has the ability to monitor financial data on citizens (albeit not immediately or directly due to oversight). In theory, the digital shekel is not very different.<\/p>\n

Public Awareness and Messaging<\/h3>\n

Another point I raised at the meeting was the Bank of Israel\u2019s responsibility to inform the public in a fair, honest, and balanced way. I asked: if the Bank truly seeks to understand the public\u2019s willingness to adopt the digital shekel\u2014why hasn\u2019t it launched a nationwide campaign like it did during Covid-19, when the government mobilized all its resources to educate the public through experts, influencers, media, social platforms, billboards, and more?<\/p>\n

Why, unlike during Covid, isn\u2019t the Bank of Israel making an effort to present the full picture\u2014including the risks and downsides\u2014not just the flattering, positive aspects?<\/p>\n

As someone with about 20 years of experience in marketing, I also pointed out the haste with which the Bank moved from releasing the study and press announcement, to publishing a post the very next day (!) on social media (Instagram, Facebook) stating: \u201c51% of the public wants a digital shekel.\u201d<\/p>\n

<\/a><\/p>\n

Every beginner marketer knows that when you highlight the yes, you obscure the no. Yes, there\u2019s interest\u2014but what about the other 49%?<\/p>\n

The post read: \u201cMost of the public sees the benefits: easy to use, convenient, and protected from fraud.\u201d Most of the public? Based on a 1,000-person study where 51% expressed interest?<\/p>\n

It also states: \u201cNo final decision has been made, but it seems the future is already here.\u201d That sounds like the decision\u2019s already been made\u2014only the launch date is missing.<\/p>\n

Conclusion<\/h3>\n

Dr. Nir Yaacobi from the Bank of Israel\u2019s Digital Shekel team said at the meeting: \u201cWe\u2019re entering uncharted territory, and we don\u2019t currently have a strategy\u201d\u2014referring to which digital financial solution will be chosen in Israel.<\/p>\n

\u201cWe\u2019re working on three fronts: a digital shekel (CBDC), stablecoins, and tokenized commercial bank deposits.\u201d He added: \u201cMaybe we\u2019ll go with one solution\u2014like the digital shekel\u2014or maybe all three. If we launch a wholesale CBDC, legislation likely won\u2019t be needed. If it\u2019s retail\u2014yes.\u201d<\/p>\n

After I finished my remarks, Assaf David-Margalit from the Digital Shekel team responded and said that some of what I said was accurate\u2014but most of it was not. When I asked what wasn\u2019t accurate, I received no response. My invitation to Mr. David-Margalit to respond with specific clarifications remains open.<\/p>\n

To conclude: I believe it is vital to raise public awareness around the digital shekel, because clearly \u201cthe future is already here.\u201d For that reason, it is essential to\u00a0openly present both the risks and benefits<\/strong>\u00a0of a digital shekel system so that an informed public can participate meaningfully in the conversation and make relevant choices about their lives.<\/p>\n

This is a guest post by Efrat Fenigson. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.<\/em><\/p>\n

This post Israel\u2019s New Study Shows 51% of Public is Interested in Adopting CBDC (Digital Shekel) \u2013 Is That So?<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Efrat Fenigson<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Israel\u2019s New Study Shows 51% of Public is Interested in Adopting CBDC (Digital Shekel) \u2013 Is That So? On April 1st, at the KPMG offices in Tel Aviv, several dozen people gathered for a meeting of the \u201cCBDC IL Forum\u201d to hear representatives from academia, the Bank of Israel, and KPMG present findings […]<\/p>\n","protected":false},"author":0,"featured_media":2938,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2937","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=2937"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2937\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/2938"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=2937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=2937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=2937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}