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How does post-quantum cryptography affect Central Bank Digital Currency?

Lars Hupel, Makan Rafiee

TL;DR

A study of typical assets in a CBDC system is conducted, which ones are most amenable to post-quantum cryptography, and an upgrade strategy is proposed.

Abstract

Central Bank Digital Currency (CBDC) is an emerging trend in digital payments, with the vast majority of central banks around the world researching, piloting, or even operating a digital version of cash. While design choices differ broadly, such as accounts vs. tokens, the wallets are generally protected through cryptographic algorithms that safeguard against double spending and ensure non-repudiation. With the advent of quantum computing, these algorithms are threatened by new attack vectors. To better understand those threats, we conducted a study of typical assets in a CBDC system, describe which ones are most amenable to post-quantum cryptography, and propose an upgrade strategy.

How does post-quantum cryptography affect Central Bank Digital Currency?

TL;DR

A study of typical assets in a CBDC system is conducted, which ones are most amenable to post-quantum cryptography, and an upgrade strategy is proposed.

Abstract

Central Bank Digital Currency (CBDC) is an emerging trend in digital payments, with the vast majority of central banks around the world researching, piloting, or even operating a digital version of cash. While design choices differ broadly, such as accounts vs. tokens, the wallets are generally protected through cryptographic algorithms that safeguard against double spending and ensure non-repudiation. With the advent of quantum computing, these algorithms are threatened by new attack vectors. To better understand those threats, we conducted a study of typical assets in a CBDC system, describe which ones are most amenable to post-quantum cryptography, and propose an upgrade strategy.
Paper Structure (34 sections, 1 figure, 3 tables)

This paper contains 34 sections, 1 figure, 3 tables.

Table of Contents

  1. Introduction
  2. Current state
  3. Cryptographic evolution
  4. Structure
  5. Terminology
  6. Related work
  7. Classical cryptographic algorithms
  8. Security requirements for cash and digital assets
  9. Classification of cryptographic primitives for digital assets
  10. Post-quantum cryptography
  11. New attack model
  12. The factorization problem and quantum advantage
  13. Quantum computing and symmetric cryptography
  14. Threats to digital assets
  15. Classical mitigation measures
  16. ...and 19 more sections

Figures (1)

  • Figure 1: Hybrid certificates (adapted from Vogt and Funke Vogt2021 and Truskovsky et al.Truskovsky2018)