IDEMIA Secure Transactions (IST) has unveiled a groundbreaking advancement in digital payments by demonstrating the first offline central bank digital currency (CBDC) payments with enhanced security against quantum threats. This innovation is aimed at preparing financial systems for future quantum computing advancements, which are expected to challenge current cryptographic defenses within the next decade.
IST’s new approach incorporates quantum-resistant public key cryptography, which has been endorsed by the National Institute of Standards and Technology (NIST). This technology enables offline CBDC transactions using two smartphones via NFC, ensuring secure payments in areas with limited connectivity. The secure element within the smartphones prevents double spending and unauthorized money creation.
The development highlights IST’s leadership in adapting to emerging threats, offering central banks and financial institutions a robust, quantum-safe solution for offline digital transactions. This effort underscores the importance of integrating post-quantum cryptography into the design of future CBDC solutions to maintain long-term security.
Jerome Ajdenbaum, IST’s VP of Digital Currencies, emphasized that this world-first achievement confirms IST’s pioneering role in payment technologies. The transition to post-quantum cryptography will require strong partnerships to ensure trust in the financial system, and IST is prepared to collaborate with central banks to integrate this technology into their CBDC frameworks.
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