In a Word on the Block interview, Mitchell Amador, the founder and chief executive officer of Immunefi, a Web 3.0 bug bounty platform, told Forkast about how the introduction of central bank digital currencies may highlight the security benefits of the decentralized finance (DeFi) industry.

Short for central bank digital currencies, CBDCs are the digital form of a country’s fiat currency, issued by central banks. CBDCs are often touted as the future of money, with over 100 countries already experimenting with the technology. 

Amador expects the introduction of CBDCs to highlight the security benefits of DeFi and attract more capital into the space. “There have already been billion-dollar hacks at traditional financial institutions. But we’re going to see an explosion of that with the rise of CBDCs,” he said.