BIS develops framework against CBDC cyberattacks
The institution cited rising exploits against DeFi as a need for more secure CBDCs. On July 7, the Bank for International Settlements (BIS), a financial institution owned by constituent central banks, published a framework for defending central bank digital currencies (CBDCs) against cybersecurity threats. The BIS wrote: "Recent examples of smart contract hacks, which have led to the loss of a significant amount of value in DeFi, serve as an example of the potential security risks CBDC systems could face." In its report, the BIS said security framework s should safeguard the confidentiality, integrity, and availability of CBDC transactions. By design, CBDCs must be able to dynamically scale to respond to a sudden surge in transaction volumes, have no single points of failure, operate 24/7 without outages, and function even if their underlying financial institution experiences an outage. Moreover: "To organise the control objectives that have been identified and adapte...