MISSING KEY: - The Challenge of Cybersecurity and Central Bank Digital Currency

44 About the Authors ...................................................................................................................................................................46 MISSING KEY: THE CHALLENGE OF CYBERSECURITY AND CENTRAL BANK DIGITAL CURRENCY Foreword The challenge of securing the dollar dates back to the The security of CBDCs has real-world import and is one of earliest days. [...] For example, er’s identity.20 Authorization refers to the process of verifying receiving $50 fully anonymously (i.e., such that even the regu- the transaction details, such as the recipient’s identity and the lator cannot see the payment details of the transaction) should amount to be paid. [...] While application-level threats or failures Human CBDC operators may not be directly the fault of the CBDC, they can affect the viability of the CBDC as a whole, as seen in the early release of the eNaira in Nigeria, for example.24 The application e.g. [...] count, and if that is the case, update the account balances of In the case of card payment, this would happen during inter- the sender and the recipient accordingly. [...] Then, the payment sender Finally, the payment validators send a payment completion creates a payment request that defines the identity of the acknowledgment to the payment recipient.