The Republican Party has raised a critical perspective on the potential privacy threats posed by the introduction of a central bank digital currency (CBDC) in the U.S. They highlight the necessity for developing CBDCs with robust quantum-resistant features to counter vulnerabilities to surveillance and cyber threats.
Although faced with resistance, the adoption of a CBDC in the U.S. is gaining traction globally, prompting the need for fortifying its defenses against cyber threats like those empowered by Shor's algorithm, which is projected to become more accessible with quantum computing advancements. The establishment of a resilient CBDC is crucial for protecting the national economy and securing financial data from external interference.
Envisaged as a digital asset under the jurisdiction of the Federal Reserve, a CBDC would serve as a digital equivalent of physical currency, offering a secure alternative within the digital assets realm. Coexisting alongside traditional currencies and other digital payment forms, a government-supported CBDC aims to enhance the diversity of payment options available to the public.
Experiments conducted in the U.S. for a theoretical CBDC involved institutions like the Massachusetts Institute of Technology's Digital Currency Initiative and The Digital Dollar Project, utilizing distributed ledger technology and specialized blockchain structures vulnerable to quantum computing breaches due to their reliance on public key cryptography.
The advent of quantum computing poses a significant risk to public-key cryptography security, underscoring the urgency of embedding quantum-resistant features into CBDC development. The lack of emphasis on post-quantum security in initial CBDC technical blueprints highlights a critical vulnerability in the U.S. monetary system, posing risks to financial privacy and stability.
Initiatives towards post-quantum research and development are underway, evident through legislative acts like the National Quantum Initiative Act, driving quantum research to bolster national security and economic stability. Strategic pathways, such as those formulated by the Cybersecurity and Infrastructure Security Agency (CISA), outline the transition towards post-quantum standards for safeguarding critical infrastructure.
Despite progress, the absence of specific post-quantum research addressing CBDC design is a notable lapse. Legislative endeavors to obstruct CBDC research conflict with the imperative to invest in post-quantum-infused CBDCs for fortifying the future financial landscape.
Agnes Gambill West, an esteemed leader in blockchain technology and digital payments, advocates for the integration of advanced security measures into CBDC designs to navigate future risks within the financial domain. Her involvement signifies the importance of aligning with evolving technological advancements to ensure a secure financial ecosystem.
