A new Atlantic Council report has outlined several principles policymakers and regulators should consider when deploying a central bank digital currency supported by cybersecurity protections.
The council said Wednesday one of the principles discussed in the report is ensuring accountability.
According to the report, the framework governing CBDCs should come up with clear policies and rules with regard to accountability for breaches, errors and other consequences. Accountability requirements should also be established among validators on the blockchain for CBDCs relying on distributed ledger technology.
Other key principles outlined in the report are promoting interoperability, developing legislative measures that “apply even-handedly to different technologies over time,” enabling security audits and testing for CBDC implementation, advancing privacy-preserving CBDC designs and using existing risk management regulations and frameworks.
The think tank also listed some of the cybersecurity risks facing CBDCs, including reduced regulatory oversight of financial systems, increased centralization of payment processing and sensitive user data and challenges in payment credential management and key custody.
