Cyber Resilience of the Central Bank Digital Currency Ecosystem

Download or read book Cyber Resilience of the Central Bank Digital Currency Ecosystem written by Arvinder Bharath and published by International Monetary Fund. This book was released on 2024-08-27 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.