Cyber Resilience of the Central Bank Digital Currency Ecosystem

By Arvinder Bharath, Anca Paduraru, Tamas Gaidosch

August 27, 2024

Preview Citation

Format: Chicago

Arvinder Bharath, Anca Paduraru, and Tamas Gaidosch. Cyber Resilience of the Central Bank Digital Currency Ecosystem, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

Over 100 central banks around the globe are exploring central bank digital currencies (CBDCs) to modernize payment systems. They aim to explore potential benefits, risks, and the broad range of new capabilities CBDCs might offer. Some view CBDC exploration as an opportunity to rethink their existing, legacy payment systems and build a resilient and secure infrastructure using modern technologies. However, a CBDC creates a vast and complex ecosystem that amplifies existing risk exposures and surfaces new ones. Given the implications of issuing a CBDC, it should be seen as a fundamental change in the way the central bank operates. This note considers experiences from live CBDCs and is informed by experiments conducted by central banks and international institutions for domestic use. It also draws from cybersecurity and resilience frameworks from standard-setting bodies.

Subject: Central Bank digital currencies, Cyber risk, Infrastructure, National accounts, Smart contracts, Technology

Keywords: CBDC ecosystem, CBDCs, Central Bank digital currencies, Central bank digital currency, Central bank digital currency ecosystem, Cyber risk, Cybersecurity, Cybersecurity of an information system, Data breach, Digital money, Fintech, Global, Infrastructure, Security perimeter concept, Smart contracts

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Fintech Notes No 2024/003
Stock No:

FTNEA2024003
ISBN:

9798400286995
ISSN:

2664-5912

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