Israel’s New Study Shows 51% of Public is Interested in Adopting CBDC (Digital Shekel) – Is That So?

On April 1st, astatine the KPMG offices successful Tel Aviv, respective twelve radical gathered for a gathering of the “CBDC IL Forum” to perceive representatives from academia, the Bank of Israel, and KPMG contiguous findings from a survey conducted by the Bank of Israel done “Roschink” probe institute. The survey included astir 1,000 participants, and the results were published on the Bank of Israel’s website. In this article, I volition reappraisal cardinal points from the meeting, remark connected the probe published by the Bank of Israel, and stock what I had said to attendees astatine the extremity of the forum meeting.

The CBDC IL Forum’s gathering brochure

Study: The Israeli Public’s Willingness to Adopt a Digital Shekel

Dr. Nir Yaacobi from the Digital Shekel squad astatine the Bank of Israel shared that participants successful the survey were randomly selected and correspond each colonisation segments. “The probe institute works with these individuals, and they are paid for their participation,” helium said. The magnitude paid was not disclosed. Prof. Ruth Plato-Shinar, 1 of the study’s authors, mentioned that the questionnaires were successful a integer format. She noted that adjacent radical with precise basal phones could participate, but acknowledged that those without immoderate integer entree apt did not enactment and astir apt don’t recognize what a integer shekel is.

Analysis of the study document reveals respective methodological issues:

1. Sampling method: An online sheet was used, meaning participants were already enrolled successful integer survey platforms—potentially biasing the illustration toward tech-savvy individuals and skewing attitudes astir a integer currency.
2. Sample representation: The random sampling underrepresented definite groups, particularly Arab citizens. Reweighting was utilized to close this by doubling responses of immoderate participants, perchance compromising authenticity.
3. Risks such arsenic nonaccomplishment of privacy, authorities overreach, and interaction connected currency economies whitethorn beryllium underrepresented owed to a bias toward digitally-inclined respondents.
4. Participant dropout: 115 participants dropped retired betwixt the archetypal and 2nd questionnaires, which whitethorn bespeak a enactment bias—those much funny successful the taxable stayed on.

Despite efforts to guarantee a typical sample, these methodological limitations whitethorn impact the study’s validity.

Avoiding Disclosure of Digital Shekel Risks

At the extremity of the meeting, I spoke critically astir the partial and chiefly affirmative accusation presented to survey participants and the CBDC IL Forum attendees. The nationalist wasn’t exposed to imaginable risks and limitations of specified a system, which I’ve elaborated connected successful galore of my keynote speeches, articles and podcasts.

The pursuing video shows that the mode the integer shekel was presented to survey participants was lacking. The statement of the integer shekel and its strategy focused connected the advantages, arsenic work by Prof. Plato-Shinar astatine the CBDC IL forum meeting:

In addition, the survey does not comprehensively code imaginable risks for extremity users—such arsenic the anticipation of authorities power implicit fiscal behavior, nonaccomplishment of privacy, plus seizure, usage of the currency arsenic a surveillance tool, restricted entree to funds owed to regulatory decisions, and more. The deficiency of accent connected these risks is particularly problematic for individuals acrophobic astir authorities overreach and privateness violations, but besides for those who are simply unaware of the imaginable dangers and their implications.

The survey does mention:

• Limited privateness claims: It is stated that “the cardinal slope volition not person entree to identified accusation astir balances and transactions successful users’ wallets,” but besides that privateness levels volition beryllium defined according to idiosyncratic type—which implies that privateness is not absolute.
• Enforcement capabilities and restrictions: “The strategy volition enactment the implementation and enforcement of restrictions” connected wallet balances, which could bespeak the imaginable for usage limitations. The integer shekel is being designed with method capabilities to enforce limits connected wallet balances—meaning it volition beryllium imaginable to specify however overmuch wealth a idiosyncratic is allowed to clasp successful their integer wallet and show that successful existent time. Although the papers does not specify who would beryllium authorized to enforce these limitations, the specified beingness of enforcement capabilities indicates a power mechanics that could theoretically let freezes, blocks, oregon different restrictions connected usage—raising questions astir fiscal freedom, privacy, and organization power.
• Government control: The Bank of Israel volition beryllium “the sole authorization empowered to contented and redeem the integer shekel,” meaning determination volition beryllium nary decentralized alternatives similar cryptocurrencies specified arsenic Bitcoin.

Implications for Cash-Based Communities

The survey does notation to the level of involvement among antithetic colonisation groups and notes that among the ultra-Orthodox community, involvement successful the integer shekel is among the lowest. However, it does not explicitly sermon the consequences of transitioning to a integer currency for communities that trust heavy connected cash. The integer shekel whitethorn airs a important situation to these groups if currency usage is yet curtailed.

Possible reasons for debased involvement among the Haredi (ultra-Orthodox) community:

• Clear penchant for cash: Most Haredim usage currency owed to privateness concerns, a tendency to debar dependence connected banks, and immoderate clasp accepted absorption to modern fiscal systems.
• Digital literacy gaps: Financial integer literacy successful parts of the ultra-Orthodox assemblage is little than the wide population.
• Fear of regulatory control: Cash offers a grade of economical independence, whereas a integer shekel whitethorn summation authorities power implicit payments.

Senior Citizens

In 2023, the Israeli Internet Society conducted a survey among Israelis aged 65 and older. It recovered that approximately 30% bash not usage the net astatine all, and “it tin beryllium said that astatine slightest immoderate of them person not bridged the entree gap.” This colonisation conception (60+) comprises around 25.3% of Israel’s full population (data from 2020). This is different illustration of a radical whose entree to exertion is limited—and truthful volition apt besides beryllium constricted successful their quality to usage a integer shekel.

Since the survey was conducted digitally, that 30% conception of this colonisation apt was not represented successful the sample. That said, only 13% of the survey participants were aged 60+ (13% successful the archetypal survey and 12% successful the second), meaning radical aged 60 and implicit were underrepresented in the sample—at astir fractional their proportionality successful the wide population.

This raises respective concerns:

• Digital exclusion: A important information of those aged 65+ simply could not enactment successful the survey.
• Overestimated tech readiness: If lone aged radical with integer skills participated, the survey whitethorn overestimate involvement among the elderly.
• Accessibility gaps: People who conflict with exertion whitethorn besides conflict to usage the integer shekel—but their perspectives were not captured.

All of these factors whitethorn present bias that should beryllium taken into relationship erstwhile interpreting the findings. To execute a much close picture, the researchers could person incorporated different probe methods (such arsenic telephone oregon in-person interviews) to scope those without integer access.

What’s New successful the World of CBDCs

At the meeting, Ben Benakot of KPMG Israel presented developments successful the CBDC space. He noted that astir countries successful the satellite are exploring CBDC solutions astatine assorted stages, and that 65 countries are successful precocious probe stages.

One lawsuit survey helium presented was Brazil, wherever the cardinal slope launched the PIX retail outgo strategy during the COVID-19 period. It saw accelerated adoption. Today, Brazil’s cardinal slope is moving connected DREX, a wholesale CBDC system, and has completed a collaboration with Meta to alteration payments via WhatsApp utilizing PIX.

Ben pointed retired that nary precocious Western countries person launched CBDC systems yet—likely 1 crushed the Bank of Israel is not rushing to marque a decision. The Bank of Israel has antecedently stated it is monitoring the EU cardinal slope arsenic a model.

Balancing the Narrative connected the EU and China

In my closing statements astatine the CBDC IL forum meeting, I besides referred to a survey conducted precocious successful the EU with little than flattering results; This survey was intelligibly not mentioned by immoderate of the forum’s experts. I recovered it important to equilibrium the overly affirmative communicative and bring the pursuing to attendees’ attention:

On March 12, the European Central Bank (ECB) published a working paper titled “Consumer Attitudes Toward CBDC,” surveying astir 19,000 respondents crossed 11 Eurozone countries. The study highlighted important connection challenges that are expected to hinder adoption of the integer euro. It recovered that Europeans amusement small involvement successful a integer euro, powerfully similar existing outgo methods, and spot nary existent added worth successful a caller outgo strategy fixed the galore alternatives.

Nevertheless, the European Central Bank precocious announced that it volition statesman the rollout of the integer euro in October 2025, pending regulatory approvals.

Read much astir the EU’s CBDC plans successful my caller article, ECB Prepping the Ground for Digital Euro Launch.

Furthermore (at the CBDC IL meeting), I went connected to explicate that the precocious adoption complaint of the CBDC successful China is not needfully a effect of nationalist enthusiasm, but alternatively of a top-down marketplace strategy led by the cardinal bank—a “If you can’t bushed them, articulation them” approach. In the aboriginal years of the e-CNY (China’s CBDC), the task was considered a nonaccomplishment owed to debased adoption. Eventually, the cardinal bank instructed major retail and tech companies to integrate e-CNY into their astir fashionable apps (DiDi, Meituan, Ctrip, WeChat Pay, and Alipay)—a determination that enabled wide adoption. Today, the e-CNY has astir 180 cardinal integer wallet users and a cumulative transaction measurement of $1 trillion.

The Trust Factor

70% of Israel’s survey participants expressed spot successful the Bank of Israel. At the meeting, Ben Benakot of KPMG commented connected the spot issue: “If we don’t spot the government, this becomes a problematic issue, due to the fact that theoretically, CBDCs springiness the authorities much data.” Benakot noted that though the Bank of Israel is designing the strategy truthful that it won’t person nonstop entree to idiosyncratic information—only authorized outgo providers will—there’s nary warrant that a aboriginal authorities won’t alteration the strategy and summation nonstop entree to accounts and idiosyncratic data.

He besides mentioned that today, for example, the Israeli taxation authorization already has the quality to show fiscal information connected citizens (albeit not instantly oregon straight owed to oversight). In theory, the integer shekel is not precise different.

Public Awareness and Messaging

Another constituent I raised astatine the gathering was the Bank of Israel’s work to pass the nationalist successful a fair, honest, and balanced way. I asked: if the Bank genuinely seeks to recognize the public’s willingness to follow the integer shekel—why hasn’t it launched a nationwide run similar it did during Covid-19, erstwhile the authorities mobilized each its resources to amended the nationalist done experts, influencers, media, societal platforms, billboards, and more?

Why, dissimilar during Covid, isn’t the Bank of Israel making an effort to contiguous the afloat picture—including the risks and downsides—not conscionable the flattering, affirmative aspects?

As idiosyncratic with astir 20 years of acquisition successful marketing, I besides pointed retired the haste with which the Bank moved from releasing the survey and property announcement, to publishing a station the precise adjacent time (!) connected societal media (Instagram, Facebook) stating: “51% of the nationalist wants a integer shekel.”

Every beginner marketer knows that erstwhile you item the yes, you obscure the no. Yes, there’s interest—but what astir the different 49%?

The station read: “Most of the nationalist sees the benefits: casual to use, convenient, and protected from fraud.” Most of the public? Based connected a 1,000-person survey wherever 51% expressed interest?

It besides states: “No last determination has been made, but it seems the aboriginal is already here.” That sounds similar the decision’s already been made—only the motorboat day is missing.

Conclusion

Dr. Nir Yaacobi from the Bank of Israel’s Digital Shekel squad said astatine the meeting: “We’re entering uncharted territory, and we don’t presently person a strategy”—referring to which integer fiscal solution volition beryllium chosen successful Israel.

“We’re moving connected 3 fronts: a integer shekel (CBDC), stablecoins, and tokenized commercialized slope deposits.” He added: “Maybe we’ll spell with 1 solution—like the integer shekel—or possibly each three. If we motorboat a wholesale CBDC, authorities apt won’t beryllium needed. If it’s retail—yes.”

After I finished my remarks, Assaf David-Margalit from the Digital Shekel squad responded and said that immoderate of what I said was accurate—but astir of it was not. When I asked what wasn’t accurate, I received nary response. My invitation to Mr. David-Margalit to respond with circumstantial clarifications remains open.

To conclude: I judge it is captious to rise nationalist consciousness astir the integer shekel, due to the fact that intelligibly “the aboriginal is already here.” For that reason, it is indispensable to openly contiguous some the risks and benefits of a integer shekel strategy truthful that an informed nationalist tin enactment meaningfully successful the speech and marque applicable choices astir their lives.

This is simply a impermanent station by Efrat Fenigson. Opinions expressed are wholly their ain and bash not needfully bespeak those of BTC Inc oregon Bitcoin Magazine.