The Role of Data Leakage Prevention System in CBDC
Adesh Mukati1, Satya Prakash2
1Adesh Mukati, Student, Master of Cyber Law and Information Security National Law Institute University, Bhopal (M.P), India.
2Dr. Satya Prakash, Assistant Professor, Department of Cyber Law Rajiv Gandhi National Cyber Law Centre National Law Institute University, Bhopal (M.P), India.
Manuscript received on 22 July 2022 | Revised Manuscript received on 05 November 2022 | Manuscript Accepted on 15 November 2022 | Manuscript published on 30 November 2022 | PP: 5-11 | Volume-2 Issue-2, November 2022 | Retrieval Number: 100.1/ijcns.B36040513223 | DOI: 10.54105/ijcns.B3604.112222
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: A centralized database-based Central Bank Digital Currency (CBDC) system’s vulnerability to cyberattacks and data leakage is a major concern. Any data leak can lead to large financial losses, irreversible reputational harm, and a decline in user confidence. To protect user information, the Reserve Bank of India has underlined the significance of a strong Data Leakage Prevention (DLP) system. While current incidents have demonstrated that the measures were insufficient to meet the standards, DLP may not be enough to defend CBDCs on its own. Incorporating Zero-Knowledge Proofs (ZKPs) and differential privacy tools into DLP solutions can improve their robustness and effectiveness. There is no one-size-fits-all solution for preventing data leakage, different solutions may be more effective in different scenarios. It’s always a good idea to assess an organization’s or system’s specific needs and requirements before deciding on the best solution. It is also important to remember that there is no such thing as absolute security, and the possibility of zero-day attacks is always there. It is essential to continuously monitor and enhance security measures to stay ahead of new threats. To preserve their Central Bank Digital Currency systems and data, financial institutions and central banks must continue to be proactive and vigilant.
Keywords: CBDC, Data Leakage Prevention System, Differential Privacy Tools, Zero-Knowledge Proofs (ZKPs).
Scope of the Article: Cryptographic Protocols