The WEF is sounding the alarm, urging central banks to prepare now for the cyber challenges of the future.
The World Economic Forum (WEF) recently issued a warning about the possible vulnerability of central bank digital currencies (CBDCs) to attacks by quantum computers.
Today, quantum computers remain mostly experimental. Although there are various proofs of concept, and several laboratories have previously claimed to solve specific problems with their help that traditional computers cannot solve in a reasonable time frame,there is still time before the hypothetical "Q-Day, the moment when attackers will be able to break standard encryption using quantum computers.
However, potential threats to traditional encryption methods can affect all industries and especially affect the digital asset sector. According to the WEF, this threat could literally destroy CBDC digital currencies.
In a blog post, WEF officials wrote on May 21 that "central banks should build cryptographic flexibility into CBDC systems to protect against quantum cyberattacks targeting payment infrastructure."
The post also mentions that "more than 98% of the world's central banks are exploring the possibilities of CBDCs. At the same time, the private sector is developing scalable quantum computers that can create $1.3 trillion in value by 2025."
There is no consensus among scientists about when quantum computers will reach the level where their power and availability will become a threat to current encryption methods. Forecasts range from several years to decades.
The WEF has identified three specific threats that quantum computers can pose to CBDCs:
To mitigate or eliminate all these threats, the WEF recommends that central banks now create CBDCs with built-in protection against quantum attacks, using "cryptographic flexibility" methodologies.
According to the WEF, "cryptographic flexibility" is the ability to easily coordinate and change cryptographic algorithms depending on current threats in real time, in order to effectively counter evolving attacks.
Thus, central banks should now adapt their systems to new threats and actively develop protective measures to ensure the security of digital currencies in the future.
The World Economic Forum (WEF) recently issued a warning about the possible vulnerability of central bank digital currencies (CBDCs) to attacks by quantum computers.
Today, quantum computers remain mostly experimental. Although there are various proofs of concept, and several laboratories have previously claimed to solve specific problems with their help that traditional computers cannot solve in a reasonable time frame,there is still time before the hypothetical "Q-Day, the moment when attackers will be able to break standard encryption using quantum computers.
However, potential threats to traditional encryption methods can affect all industries and especially affect the digital asset sector. According to the WEF, this threat could literally destroy CBDC digital currencies.
In a blog post, WEF officials wrote on May 21 that "central banks should build cryptographic flexibility into CBDC systems to protect against quantum cyberattacks targeting payment infrastructure."
The post also mentions that "more than 98% of the world's central banks are exploring the possibilities of CBDCs. At the same time, the private sector is developing scalable quantum computers that can create $1.3 trillion in value by 2025."
There is no consensus among scientists about when quantum computers will reach the level where their power and availability will become a threat to current encryption methods. Forecasts range from several years to decades.
The WEF has identified three specific threats that quantum computers can pose to CBDCs:
- First, quantum computers can be used to break encryption "on the move", which will allow attackers to intercept transactions in real time.
- The blog also indicates the threat of identity spoofing, which involves the use of quantum systems to break the encryption that protects identity verification systems, which will allow hackers to use fake IDs.
- Finally, the WEF noted the most common threat posed by quantum computers: "collect now, decipher later." In this case, attackers are already stealing encrypted data and storing it for later decryption by a future quantum system.
To mitigate or eliminate all these threats, the WEF recommends that central banks now create CBDCs with built-in protection against quantum attacks, using "cryptographic flexibility" methodologies.
According to the WEF, "cryptographic flexibility" is the ability to easily coordinate and change cryptographic algorithms depending on current threats in real time, in order to effectively counter evolving attacks.
Thus, central banks should now adapt their systems to new threats and actively develop protective measures to ensure the security of digital currencies in the future.
