Security Of Digital Wallet for CBDC

Security of Digital Wallet for CBDC

A digital wallet is a software program or a hardware device that can store digital assets, through which users can access the assets for financial transactions such as viewing, trading, sending, receiving, and exchanging the assets which are supported by underlying functions like managing keys and addresses, tracking balances, and creating and signing transactions. The wallets protect digital assets by securely storing digital keys and generating wallet addresses for further external transactions. The digital wallets mainly refer to the ones for cryptocurrencies like Bitcoin, Ethereum etc. or money-transfer applications like Venmo, Alipay etc.

CBDC wallet as a bank agent

CBDC wallet is essentially a small size of bank inside a pocket or a handbag in the form of a credit card, a token type, or just a software application in a mobile phone or browser expected to provide:

•User Authentication

•Transaction Authentication

•User Interface

• Privacy and Transparency Balance

A wallet for CBDC has no standard architecture and yet to be defined. CBDC wallet is essentially a small size of bank inside a pocket or a handbag in the form of a credit card, a token type, or just a software application in a mobile phone. As people accept CBDCs as their standard payment method, the activities with CBDC wallets…