The World Economic Forum (WEF) recently warned that Quantum computers may breach CBDCs with decryption attacks.
The World Economic Forum (WEF) recently issued a dire warning regarding the possible susceptibility of central bank digital currencies (CBDCs) to decryption assaults from quantum computer systems.
The majority of quantum computers are still in the experimental stage. Several proofs-of-concept are available, and a limited number of laboratories assert that they have utilized quantum systems to resolve bespoke problems that conventional, binary computers could not do within a reasonable timeframe.
However, a considerable amount of time remains until “Q-Day,” the speculative moment when malicious actors will possess quantum computers capable of cracking standard encryption.
Although encryption concerns ostensibly impact all industries, the digital asset sector is particularly exposed to one of the most significant consequences. As per the WEF, this enormous menace can “break” CBDCs.
The WEF stated in a blog post dated May 21 that “central banks must integrate cryptographic agility into CBDC systems to protect payment infrastructure from quantum cyberattacks.”
As stated in the blog post:
“More than 98% of the global economy’s central banks are exploring CBDCs. […] In parallel, the private sector is pursuing scalable quantum computers that can operate at scale to create $1.3 trillion in value by 2025.”
Notably, physicists are divided as to when quantum computers will advance to the point where their availability, power, and utility threaten existing encryption techniques. Predictions span decades rather than a few years from now.
In pursuing this objective, the WEF has identified three risks that quantum computation may present to CBDCs.
To begin with, the WEF posits that quantum computers can potentially breach “in motion encryption,” enabling malicious entities to surveil ongoing transactions.
Additionally, the blog post references identity impersonation as a potential threat vector. This presumably refers to using quantum systems to breach the encryption that safeguards identity verification systems, allowing for the insertion of spoofed identity assets.
The WEF identified the most frequently cited concern regarding quantum computers: “Harvest now, decrypt later.” As the name suggests, malicious actors store encrypted data in this attack vector so that a future quantum system can decrypt it.
According to this paradigm, before the threat materializes, victims may be oblivious that their data has been compromised for years or even decades.
We advise that CBDCs be constructed with quantum-resistant safeguards at their core using a “cryptographic agility” technique to mitigate or eliminate these threats.
As stated by the WEF:
“Cryptographic agility is a capability that provides the ability to orchestrate and rotate cryptographic algorithms based on real-time threats easily and to thwart evolving attack techniques.
