and crypto - assets – as the two techniques of key encapsulation and digital signature currently used are both based on asymmetric encryption, which is vulnerable to the quantum threat. it will be of outmost importance to factor in the risks stemming from quantum computing when designing the central bank digital currencies. this risk is already on the table with the practice of'harvest now, decrypt later'used by malicious actors. information embedded in contracts currently in force needs to be kept secret for years to come. even just the possibility that some of it will be exposed – as soon as the technology becomes available – is already a potential blow to trust. 2 / 5 bis - central bankers'speeches 2. the state of the art : one problem, many potential technical approaches as we will see through the lunch session, some solutions to mitigate cyber issues are already available. the heart of cybersecurity lies in cryptography, which – from encrypting data to securing online transactions – is the guardian of our digital world. as the financial industry and governments prepare to protect against quantum threats, it is necessary that they become'crypto - agile ', adopting a multifaceted security strategy that incorporates a range of easily upgradable quantum - resistant solution. the showcase exercise that will be performed in this session will demonstrate that there are two different but complementary approaches that can be used in order to deal with quantum - safe cryptography. on the one hand, we can take advantage of quantum properties to establish secure communication channels between parties, where any attempt to eavesdrop or intercept the exchange of encryption keys is detected. on the other hand, considering that the cryptography involves the use of mathematical algorithms to transform readable data into encrypted data and vice versa, it is possible to replace the current algorithms ( unbreakable now, but solvable with quantum computing ) with others that are more difficult to solve, even for a quantum computer. each one of these technologies – or a combination of them – will allow full end - to - end security in our digital communications. at the same time, however, these technologies are all extremely demanding in terms of time and resources. at the current state of the technology, embracing the quantum physics approach is estimated to impose costs of a higher order of magnitude, though it appears to provide a definitive solution to the quantum threat. the showcase exercise will demonstrate how some solutions already available to the market work, leveraging the points

##i for assistance in preparing these remarks. return to text 2 the labor market conditions indicators can be found on the kansas city fed ’ s website at www. kansascityfed. org / data - and - trends / labor - market - conditions - indicators. return to text 3 the fed staff ’ s index of common inflation expectations — which is now updated quarterly on the board ’ s website — is a relevant indicator that this goal is being met. see ahn and fulton ( 2020, 2021 ). return to text 4 fomc statements, including those issued since the december 2020 meeting, are available on the board ’ s website at www. federalreserve. gov / monetarypolicy / fomccalendars. htm. return to text 5 the most recent sep, released following the conclusion of the september 2021 fomc meeting, is available on the board ’ s website at www. federalreserve. gov / monetarypolicy / fomccalendars. htm. return to text 6 the revised statement on longer - run goals and monetary policy strategy, unanimously approved on august 27, 2020, is available on the board ’ s website at www. federalreserve. gov / monetarypolicy / review - of - monetarypolicy - strategy - tools - and - communications - statement - on - longer - run - goals - monetary - policy - strategy. htm. for a discussion of the elements that motivated the launch of the review and a summary of the key changes that were introduced, see clarida ( 2020, 2021 ) and powell ( 2020 ). return to text 7 for a theoretical analysis of the fiscal and monetary policy mix at the elb, see woodford and xie ( 2020 ). for studies of the government expenditure multiplier at the elb, see woodford ( 2011 ) ; christiano, eichenbaum, and rebelo ( 2011 ) ; and eggertsson ( 2011 ). return to text 3 / 3 bis central bankers'speeches