The Currency Cold War: Cash and Cryptography, Hash Rates and Hegemony
by
David G. W. Birch
Published 14 Apr 2020
As an International Monetary Fund (IMF) paper on the subject puts it (see Adrian and Mancini-Griffoli 2019), digital money systems ‘could for instance allow users to determine the goods that e-money could purchase – a useful feature for remittances or philanthropic donations’. That is only the tip of the iceberg, to my mind. An aside: post-quantum cryptography Much of the discussion about meta-technology here rests on the use of asymmetric cryptography (which uses public and private keys), which is at the heart of the practical implementation of e-money. Before I am deluged with letters from sophisticated and educated readers pointing out that the advent of quantum computing may well render widely deployed asymmetric cryptography null and void … I know.
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Countermeasures Broadly speaking, there are two very different approaches to protecting against the threat posed by quantum computation. One is quantum key distribution, or QKD. This exploits the quantum properties of physical systems, so it requires specialized hardware. The other is post-quantum cryptography, or PQC, which, as with existing forms of asymmetric cryptography, exploits the intractability of certain mathematical problems, so it can be implemented in hardware or software. The goal of PQC (also called quantum-resistant cryptography, or QRC) is to develop cryptographic systems that are secure against both quantum and classical computers, and that can interoperate with existing communications protocols and networks.
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Glossary ACU: alternative currency unit AI: artificial intelligence AML: Anti-Money Laundering AMLDV: Anti-Money Laundering Directive API: application programming interface BIS: Bank for International Settlements BRI: Belt and Road Initiative (China) BSA: Bank Secrecy Act (United States) CBDC: central bank digital currency CDD: customer due diligence CDP: collateralized debt position CFA: Franc of the Financial Community of Africa CFSI: Centre for the Study of Financial Innovation CHIPS: Clearing House Interbank Payment System CPS: Crime Pays System CTF: counter-terrorist financing DCA: digital currency area DCEP: Digital Currency/Electronic Payment DeFi: decentralized finance ECB: European Central Bank ECU: European Currency Unit ELMI: Electronic Money Institution ESL: enterprise shared ledger FinCEN: Financial Crimes Enforcement Network FINMA: Financial Market Supervisory Authority ICO: initial coin offering IMF: International Monetary Fund IMFS: International Monetary and Financial System JPMC: JPMorgan Chase SHC: synthetic hegemonic currency HMRC: Her Majesty’s Revenue and Customs KYC: Know Your Customer KYZ: Known-bY-Zuck NFC: near-field communication NCSC: National Cyber Security Centre NIST: National Institute of Standards and Technology OFAC: Office of Foreign Assets Control PBoC: People’s Bank of China PEPSI: Pan-European Payment System Initiative PIN: personal identification number Pseudonym: a persistent alias to an identity PQC: post-quantum cryptography SDR: special drawing right SEC: Securities and Exchange Commission SGA (Saga): a partially collateralized stablecoin SHC: synthetic hegemonic currency Sibos: The annual SWIFT banking conference SIM: subscriber identification module, the chip inside a digital mobile phone that links the device to a user SMS: short message service (the GSM text message service) SWIFT: Society for Worldwide Interbank Financial Telecommunications USSD: Unstructured Supplementary Service Data Bibliography Adrian, T., and T.
Quantum Computing for Everyone
by
Chris Bernhardt
Published 19 Mar 2019
Over the years other methods of encryption have been developed, but Shor’s algorithm also works on many of these. It has become clear that we need to develop new cryptographic methods—and these new methods should be able to withstand not just classical attacks but also attacks by quantum computers. Post-quantum cryptography is now an extremely active area, with new methods of encryption being developed. Of course, there is no reason why these have to use quantum computing. We just need the encrypted message to be able to withstand being broken by a quantum computer. But quantum ideas do give us ways of constructing secure codes.
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See Complexity classes, EQP Exponential time, 143 Fan-out, 100 Feynman, Richard, 89, 115, 182 Flip about the mean, 179 Flip-flop, 103 Fredkin, Edward, 89, 111, 115 Freedman, Stuart, 82 Function balanced, 146 constant, 146 Functional completeness, 94–96 Garbage bit, 109 Gate AND, 98 controlled not (CNOT), 67, 105 Fredkin, 109 Hadamard, 122 NAND, 99 NOT, 98 OR, 99 Pauli, 121 quantum, 117, 120 reversible, 102 switch, 111 Toffoli, 107 universal, 101, 108, 110, 123 XOR, 102 Gerlach, Walther, 1 Google, 184 Gravity, 75–76 Grover, Lov, 176 Half-adder, 102–103 Hidden variables, 11, 71, 77–78 IBM, 182, 184 ID Quantique, 176 Interference, 52–53, 174 Ion-trap, 183 Josephson junction, 183 Ket, 19 Kronecker product, 149–152 Landauer limit, 105 Linear algebra toolbox, 35 Linearly independent, 165 Linear superposition, 50 Local realism, 71, 75–76 Logical equivalence, 93 Many-worlds view, 85 Matrix, 30 Hadamard, 159–160 identity, 32 Kronecker product, 149–152 main diagonal, 32 multiplication, 31, 32 not commutative, 32 orthogonal, 34 square, 32 transpose, 31 unitary, 34 Micius, 176 Millennium Prize, 144 NMR machine, 185 No cloning theorem, 124–126, 134, 138 Non-commutative operation, 32, 58 NVision Imaging Technologies, 185 Oracle, 145 Ordered basis, 29 Orthonormal basis, 25 Parallelogram law, 22 Parallel universes, 187 Parity check, 137–139 Pauli, Wolfgang, 121 Pauli transformations, 121 Peirce, Charles Sanders, 97 Petzold, Charles, 101 Photosynthesis, 182 Podolsky, Boris, 76 Polarization, 11–15 Polarized filters, 12–15 Polynomial time, 142–144 Post-quantum cryptography, 175 Probability, 37–38 Probability amplitude, 29, 39, 52 Pseudorandom numbers, 15 P versus NP, 144 Pythagorean theorem, 20 Quadratic speedup, 180 Quantized spin, 15 Quantum annealing, 185–186 Quantum bit, 1, 49–50 Quantum bit-flip correction, 137–140 Quantum clock, 6, 14, 68–69, 78 Quantum Fourier transform, 174 Quantum key distribution (QKD), 53, 86, 175–176 Quantum parallelism, 141, 168–169 Quantum speedup, 141 Quantum supremacy, 184, 186–188 Quantum teleportation, 132–135, 176 Quantum tunneling, 186 Qubit.
The Fifth Domain: Defending Our Country, Our Companies, and Ourselves in the Age of Cyber Threats
by
Richard A. Clarke
and
Robert K. Knake
Published 15 Jul 2019
The Chinese government has what: Stephen Chen, “China Building World’s Biggest Quantum Research Facility,” South China Morning Post, September 11, 2017, www.scmp.com/news/china/society/article/2110563/china-building-worlds-biggest-quantum-research-facility. quantum-resistant encryption standard: “Post-Quantum Cryptography,” National Institute of Standards and Technology, CSRM.NIST.com, accessed January 4, 2019, csrc.nist.gov/projects/post-quantum-cryptography. Chapter 17: 5G and IoT quarter trillion dollars: Hillol Roy, “Tackling the Cost of a 5G Build,” Accenture, August 3, 2018, www.accenture.com/us-en/insights/strategy/5G-network-build. publicly published 132 questions: “Promoting Unlicensed Use of the 6 Ghz Band,” Notice of Proposed Rulemaking, Federal Communications Commission, October 2, 2018, https://docs.fcc.gov/public/attachments/DOC-354364A1.pdf.