BIS Warns of Cybersecurity Risks for Central Bank Digital Currencies (CBDCs)

The Bank for International Settlements (BIS) has warned that central bank digital currencies (CBDCs) are vulnerable to cyber threats such as cyberattacks, digital bank robberies, and hacks. The report highlights the importance of cybersecurity as a significant risk associated with the increasing adoption of digital cash initiatives by monetary authorities worldwide. The report suggests conducting small-scale pilot tests for CBDCs to identify and mitigate vulnerabilities before any large-scale launch. Over 10 countries have already introduced live CBDCs, with China trialing a digital yuan among 200 million consumers, and the European Central Bank has initiated advanced prototyping for a digital euro.