In a significant gathering convened by the Bank for International Settlements (BIS) in Basel, Switzerland, Agustín Carstens, the General Manager of BIS, underscored the pivotal role of cybersecurity in the realm of Central Bank Digital Currencies (CBDCs). Addressing a global assembly of financial experts, Carstens heralded CBDCs as the cornerstone of a rapidly approaching digital transformation within the monetary system.
Carstens articulated that as the financial system verges on a digital overhaul, central banks face the dual responsibility of keeping pace and steering this innovation to benefit the public good. CBDCs, in his view, are central to this transformation, whether they serve as digital reserves for banks or digital banknotes for the public. However, these new currency forms demand a secure, user-friendly, and legally sound framework to succeed and gain public trust.
Acknowledging the complexities of securing digital currencies, Carstens emphasised that CBDCs must be equipped to confront a myriad of challenges, including cyber threats and the rapid advancement of technologies such as quantum computing and generative AI. Flexibility in CBDC design is crucial to adapt to these evolving challenges effectively.
In his remarks, Carstens didn’t just focus on the technical aspects; he also highlighted the importance of maintaining a balance between security and privacy to ensure these digital currencies are accepted by the public.
The BIS Innovation Hub and the Cyber Resilience Coordination Centre were spotlighted as the vanguards in this mission, having already spearheaded numerous projects to fortify the security of CBDCs. Moreover, Carstens called for a collaborative effort that transcends individual organisations, emphasising the role of the private sector in customer-facing services and the collective benefit of a secure system.
The conference, which spanned two days, serves as a critical juncture for key players in the financial industry to discuss, deliberate, and design strategies for a secure monetary future. This includes drawing from the BIS Innovation Hub’s experiments, public sector organisations’ advancements in managing cyber threats, and the private sector’s latest cybersecurity endeavours.
Carstens concluded with an invitation to embrace the collective challenge of securing the future monetary system, a challenge that, if met, will align with central banks’ mandates to fulfil the public’s needs and fortify trust in the financial system as a whole.
