The World Economic Forum (WEF) has issued a stark warning about the vulnerability of central bank digital currencies (CBDCs), urging the implementation of quantum-resistant strategies to protect these digital currencies from emerging cyber threats.

Quantum computing poses a significant risk to current encryption technologies, according to a new report from the WEF, developed in collaboration with experts from Accenture.

The report highlights that more than 98% of central banks worldwide are exploring CBDCs to improve cross-border payments, and urges that the risks of quantum computing be taken into account when developing these systems.

The Quantum Threat

Quantum computers are revolutionary in solving complex problems, but they could also undermine the encryption mechanisms that protect financial data, making CBDC systems extremely vulnerable to cyberattacks. This is particularly worrying because CBDCs are intended to improve cross-border payments and enhance financial inclusion.

Accenture experts stressed that central banks must incorporate encryption flexibility into CBDC systems because quantum cyber attacks could intercept network communications, impersonate individuals, and steal financial assets, causing serious economic impacts.

The report states:

“Quantum computers have the potential to revolutionize data-intensive tasks across industries. However, they also pose a unique cybersecurity threat as they could undermine current encryption schemes that protect critical financial data.”

A 2021 Hudson Institute study showed that a quantum attack on the dollar's total settlement system could significantly reduce GDP and trigger a recession.

preventive solution

The WEF report recommends several strategies for mitigating these risks, including performing quantum-safety risk analyses, cataloguing cryptographic mechanisms, and implementing rigorous cyber resilience measures on entities with access to CBDC systems.

It is also critical to implement key encapsulation mechanisms and digital signature algorithms to protect communications and identities within these systems. The international community is working to find ways to protect the next generation of national payment systems, including CBDCs.

The World Economic Forum (WEF) has established the Quantum Economy Network to provide guidance to the financial industry and help develop global regulatory strategies. At the same time, the Bank for International Settlements (BIS) has also announced the latest progress of its Leap project, which is committed to promoting research on quantum-safe encryption technology for the financial system. These initiatives show that global financial regulators are actively responding to the challenges brought by quantum computing to ensure the security and stability of the financial system.

The report concludes that cryptographic flexibility must be at the core of any CBDC system to protect financial infrastructure from quantum cyberattacks. Public and private sector collaboration in building cyber resilience will be key to successfully defending against quantum threats.

The report concludes that as central banks pursue CBDCs, emphasizing quantum-resistant strategies is critical to ensuring the security and stability of future financial systems.

Conclusion:

With the rise of quantum computing, global financial regulators are taking proactive steps to protect central bank digital currencies (CBDCs) from the risks that this emerging technology may bring. Projects by the World Economic Forum (WEF) and the Bank for International Settlements (BIS) demonstrate the urgency of developing quantum-resistant strategies.

To ensure the long-term security and stability of the financial system, it is necessary to incorporate cryptographic flexibility into the design of CBDC and strengthen cooperation between the public and private sectors to jointly build network resilience to resist quantum threats. #世界经济论坛 #CBDC #量子威胁