Future Directions for Regulated Private Wallets and VASP Trust Infrastructures
Thomas Hardjono · 2021 IEEE International Conference on Blockchain and Cryptocurrency (ICBC) · 2021
A true decentralized peer-to-peer electronic cash system requires control of private keys by end-users in private wallets. This necessitates wallet systems to utilize trusted hardware to protect keys. However, trusted hardware alone is not enough. There must be a corresponding attestation infrastructure to support the verification of evidence regarding the state of the trusted hardware, the provenance and the presence of keys, and other related configurations. This permits legitimate external entities to obtain some degree of visibility into the wallet state without access to the private keys. Relying parties, such as crypto-funds insurance providers and auditors of CBDC distributors, require such visibility for risk assessment. New VASPs have the opportunity today to invest in these emerging infrastructures.