This report exami­nes the novel cyber­se­cu­ri­ty impli­ca­ti­ons that could emer­ge if the United Sta­tes or ano­ther coun­try issues a Cen­tral Bank Digi­tal Cur­ren­cy (CBDC). Cen­tral banks con­sider cyber­se­cu­ri­ty a major chall­enge to address befo­re issuing a CBDC. The United Sta­tes Fede­ral Reser­ve (Fed) sees secu­ring both the dol­lar and the inter­na­tio­nal finan­cial sys­tem as a core natio­nal secu­ri­ty impe­ra­ti­ve. Accor­ding to Atlan­tic Coun­cil rese­arch, curr­ent­ly 105 count­ries have been rese­ar­ching and explo­ring the pos­si­ble issu­an­ce of CBDCs, with fif­teen in pilot stage and ten ful­ly laun­ched. Of the Group of Twen­ty (G20) eco­no­mies, nine­teen are explo­ring a CBDC with the majo­ri­ty alre­a­dy in pilot or deve­lo­p­ment. This rai­ses imme­dia­te ques­ti­ons about cyber­se­cu­ri­ty and pri­va­cy. A govern­ment-issued digi­tal cur­ren­cy sys­tem could, but does not neces­s­a­ri­ly need to, coll­ect, cen­tra­li­ze, and store mas­si­ve amounts of indi­vi­du­als’ sen­si­ti­ve data, crea­ting signi­fi­cant pri­va­cy con­cerns. It could also beco­me a prime tar­get for tho­se see­king to desta­bi­li­ze a country’s finan­cial system. …

Quel­le /​ Link: Miss­ing Key: The Chall­enge of Cyber­se­cu­ri­ty and Cen­tral Bank Digi­tal Currency