Issuing a central bank digital currency (CBDC) requires adequate attention to security, the Bank for International Settlements (BIS) reminded central bankers in a report on Nov. 29. An integrated risk-management framework should be in place starting at the research stage, and security should be designed into a CBDC, the report said.
The risks associated with CBDCs will vary across countries, as conditions and goals vary, and they will change over time, requiring continual management. These risks can be broken down into categories and a wide array of individual factors, the study demonstrated. The risks grow with the scale and complexity of the CBDC. In addition: