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Discussion Paper
Primary and Secondary Markets for Stablecoins
Stablecoins are increasingly important in decentralized finance (DeFi) and crypto asset markets, and their prominence has led to greater scrutiny of their unique role as expressions of the U.S. dollar running on blockchain networks. Stablecoins attempt to perform a mechanically complex function – to remain pegged to the dollar, even during periods of market volatility.
Discussion Paper
Offline Payments: Implications for Reliability and Resiliency in Digital Payment Systems
With the proliferation of digital payments, internet-based technology has been integral in supporting the delivery of these transactions. Traditional digital payments, such as those made with credit cards, debit cards, and mobile wallets, often require an internet connection to settle transactions. Processors must communicate between banks to carry out a payment, relying on internet connectivity to do so.
Working Paper
“Harvest Now Decrypt Later”: Examining Post-Quantum Cryptography and the Data Privacy Risks for Distributed Ledger Networks
This paper analyzes the risks posed by future-state quantum computers, specifically the “harvest now decrypt later” (HNDL) risk. We review foundational concepts of quantum computing to address the present and ongoing threat of HNDL to currently protected data. We use the Bitcoin network as an illustrative example to study the implications of HNDL for distributed ledger cryptocurrency networks that rely upon traditional cryptography. We posit that while cryptocurrency distributed ledger network maintainers could successfully deploy post-quantum cryptography (PQC) mitigations to protect the ...