IDEMIA Secure Transactions (IST) has revealed what they believe to be the first ever offline central bank digital currency (CBDC) payments incorporating enhanced security against quantum threats.
IDEMIA states that this major innovation promises to transform financial transactions and pave the way for an era of post-quantum security with IST positioning itself as the leader in this transformation.
With quantum computers soon to enter all areas of business and finance, it is vital that companies prepare for all the new threats that will accompany these revolutionary technologies.
Most experts estimate that a powerful quantum computer capable of breaking widely used cryptographic defences could be developed within the next 10 years.
IDEMIA believes it has demonstrated its feasibility for central banks and financial institutions with this solution, offering their citizens ultra-secure, quantum-computer-resistant methods for their offline CBDC payments.
The advent of quantum computers must be taken into account as central banks design today their CBDC solutions to ensure long-term security.
Offline CBDC allows digital currency transactions without internet, ensuring cash-like secure and seamless payments in areas with limited connectivity. This offline CBDC payment transaction uses quantum-resistant public key cryptography endorsed by the National Institute of Standards and Technology (NIST), a world first leveraging IST’s pioneering leadership in advanced cryptography.
The offline transactions demonstrated as part of this quantum-safe solution are performed using two smartphones thanks to NFC. Money is stored inside a secure element fortified with quantum-safe cryptography to guarantee security and prevent the risks of double spending or unauthorized money creation.
For end-users, this means reassurance that their CBDC transactions are secure and seamless independently of the advent of powerful quantum computers. In other words, IST gives citizens access to the most secure methods of payment without having to worry about possible risks.
The transition to post-quantum cryptography will require strong and long-term partnerships between technology providers, central banks and financial institutions to ensure continued trust in the financial system.
This pioneering technology offers them the opportunity to work with IDEMIA Secure Transactions to develop their tailor-made CBDC solutions, adapted to the challenges of the post-quantum era.
“This world first confirms IDEMIA Secure Transactions’ role as a pioneer and frontrunner in today and tomorrow’s payment technologies,” said Jerome Ajdenbaum, VP Digital Currencies at IDEMIA Secure Transactions. “The quantum threat is real, but the good news is we demonstrated today it is possible to create a reliable quantum-safe offline CBDC.
“Starting now, we will integrate it from the design phase with our partner central banks.”
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