Blockchain & Cryptocurrency , Next-Generation Technologies & Secure Development , Video

Securing Technology Behind Central Bank Digital Currency

Two Experts Discuss the Practical, Technical Challenges of Digital Currencies
Bharat Panchal, chief industry relations and regulatory officer - India, Discover Financial Services and Prasanna Lohar, CEO, Block Stack

For Central Bank Digital Currency to gain mass popularity, it is important for the Reserve Bank of India to secure it in the right manner by having a strategy of continuous monitoring, say two experts: Prasanna Lohar, CEO of Block Stack, and Bharat Panchal, chief industry relations and regulatory officer in India for Discover Financial Services.

See Also: Looking Towards 2024: Global Trends in AML and Financial Crimes Compliance

Panchal says the security tools of CBDC need to be based on design considerations. "There are multiple technologies out there when it comes to CBDC's centralized ledger to token-based. In terms of security, due consideration needs to be given before selecting a technology," Panchal says.

He says one also has to factor in people risk. "It will not just be a technology risk. We need to consider the mass of people who will be leveraging this. Continuous monitoring is the key, not only of the database but of every dot in the ecosystem. We also have to learn from each and every transaction."

For Lohar, the key is to take care of every account. "When it comes to token-based CBDC, it has security in-built and provides coverage to all the ecosystem. The way blockchain is designed, it is very easy to build token-based systems. That will give a lot of security and privacy to customers."

In this video interview with Information Security Media Group, the panelists also discuss:

  • How CBDC is different from the UPI platform;
  • Design considerations for security;
  • Whether CBDC will become a surveillance tool for the government.

Panchal formerly worked with the National Payments Corporation of India. He is a well-known architect of digital risk management and cybersecurity of India's entire retail payments ecosystem.

Lohar has more than 22 years of experience delivering services on multiple technology stacks and emerging technologies, including cloud, blockchain, IoT, artificial intelligence and biometrics.

The speakers' views expressed in this video are personal and do not necessarily reflect the views of their companies.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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