The Bank for International Settlements released a report analyzing the operating, technology, third-party and business continuity risks for a central bank issuing central bank digital currency (CBDC).
An integrated risk-management framework is proposed that can be applied to the entire life cycle of a CBDC, from the research and design stages to implementation and operation. The report discusses the implications of many of the design choices that a central bank needs to take and suggests tools and processes to identify and mitigate the risks that a CBDC poses to the issuing institution.
For CBDCs to be a reliable means of payments, central banks also need to address, among others, the risks of interruptions or disruptions and ensure integrity and confidentiality. A key risk are the potential gaps in central banks’ internal capabilities and skills. While many of the CBDC-related activities could in principle be outsourced, doing so requires adequate capacity to select and supervise vendors.