Central Bank Digital Currencies: Cyber Risks

Digital bank robberies and cyber hacks pose significant risks for countries launching central bank digital currencies (CBDCs), according to a report from the Bank for International Settlements (BIS). The report highlights challenges such as technological know-how, outsourcing risks, and environmental impact. The number of banks working on CBDCs has tripled globally, with nearly a dozen already launched, including in the Bahamas and Nigeria. China is trialling a prototype digital yuan, and the European Central Bank has begun advanced-stage exploratory work.