- BIS Innovation Hub Nordic Centre develops a security and resilience framework to address cybersecurity issues in CBDC systems.
- The framework offers a seven-step strategy using industry standards to help central banks understand and manage cyber threats.
- BIS also proposes UnifiedLedger, a platform that integrates CBDCs with tokenized assets in a single ecosystem.
Cybersecurity plays a critical role in the context of central bank digital currency (CBDC) systems. Because of the increasing digitization of financial transactions and the vulnerabilities inherent in the digital environment. CBDCs are digital representations of a country’s fiat currency issued and regulated by a central bank. As these systems handle significant financial transactions and store sensitive user data, they become attractive targets for cybercriminals.
The BIS Innovation Hub Nordic Centre has produced a thorough security and resilience architecture. It is a significant attempt to address the mounting issues surrounding cybersecurity in central bank digital currency (CBDC) systems.
In order to reduce operational, legal, and reputational risks brought on by cyberthreats or operational failures, the framework intends to help central banks design, install, and run secure and robust CBDC systems.
Previously, BIC had unveiled a UnifiedLedger for CBDC. With the growth of linked devices and rising digitalization, the release of this new framework coincides with the rapid evolution of the digital landscape.
The complex and dynamic cyber threat landscape needs to be actively managed by central banks and other CBDC ecosystem participants. The BIS Innovation Hub Nordic Centre has created a framework that especially addresses the special difficulties presented by CBDC systems in response to the demand for thorough guidance.
The security and resilience framework makes use of current industry standards and recommendations. It provides central banks with a solid seven-step strategy for putting in place secure CBDC systems.
By making use of this paradigm, central banks can better comprehend the complexity and evolving threat environment related to CBDC systems. It offers a methodical method for locating possible dangers, building robust infrastructures, and putting in place efficient cybersecurity solutions.
The BIS Innovation Hub Nordic Centre aims to empower central banks all over the world to handle the complex problems posed by CBDC systems by building this security and resilience architecture. Cybersecurity must be prioritised in order to protect the reliability and integrity of these financial innovations as they continue to gain popularity.