Today the Nordic BIS Innovation Hub published two papers for Project Polaris on cybersecurity. One paper is about threat assessments using learnings from the DeFi sphere. And the other is a CBDC cybersecurity framework.
Most retail central bank digital currencies (CBDC) will be two-tiered with commercial banks often providing the wallet user interface. However, the reputational risks of something going wrong will often rest with the central bank.
There’s a daunting list of cybersecurity risks, but many of these exist today for other payment systems. However, a few do not. For example, digital currencies add programmable and automated payments. The paper points to DeFi smart contract hacks as evidence of the sort of losses that hacks could cause.
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