The Central Bank of Israel has released the results of a lab experiment that examined user privacy and the use of smart contracts in payments in relation to a potential digital shekel. Israel has been considering issuing a central bank digital currency (CBDC) since 2017 and carried out a pilot test in 2021. The latest technological experiment was the first by the central bank with a CBDC. The experiment’s first stage modeled the sale of a car in a two-tier system with an intermediary payment service provider. The experiment drew attention to two questions: the amount of money to be held in digital form and the execution of the smart contract. It also highlighted the need to establish identity so that KYC/AML could be conducted through a centralised database.