Glossary

Private DLTs are open to participants approved by a central authority with control over the DLT network and its design. Information regarding the private DLT is not usually available outside the network.

A secret key that must only remain known to the recipient. A private key is somewhat comparable to a pin or verification code.

Money held in the form of deposits and used for lending by a commercial bank.

The ability to apply a coded instruction automatically to a digital payment so that if set conditions are met, an action then happens. It is most often the payment that is programmable and not the money used to make that payment, but the distinction between the two is still being sorted out. See also Smart contract.

In cryptocurrency, proof of stake uses a deterministic algorithm based on the number of coins owned by a user. This algorithm offers the possibility for nodes to increase their chances of being elected to mine more coins and encourages coin owners to maintain the network because the choice is random. The more coins owned, the higher the chance of being chosen. See also Proof of work.

In cryptocurrency, proof of work solutions refer to transactions secured through a linear trail of transaction history and the use of a computational puzzle (‘proof of work’ consensus algorithm) which reflects that work.

A protocol for verifying cryptocurrency transactions. Nodes use their computing power to prove themselves sufficiently trustworthy to be allowed to add new information about transactions to the network.

A set of policies, processes, server platforms, software, and workstations used for administering public key certificates and public-private key pairs, including the ability to issue, maintain, and revoke certificates.

Money that is issued and held by a central bank.

A cooperative arrangement between two or more public (ie. government) and private sector entities.

The basic unit of information used to encode data in quantum computing. Can be best understood as the quantum equivalent of the traditional bit used by classical computers to encode information in binary.

A type of 2D matrix barcode which stores information as a series of pixels in a square-shaped grid. Typically, smartphones are used to scan QR codes, displaying an image of the code and converting it to, say, a standard URL for a website. QR codes can store up to 4,296 alphanumeric or 7,089 numeric characters and are clearly distinguished from datamatrix barcodes by large squares placed at three corners of the code, which are used for alignment. Compared to standard UPC barcodes, QR codes offer faster reading of the optical image and greater data storage capacity in applications such as product tracking and item identification.

An act of cybersecurity fraud using QR codes to redirect victims to malicious websites or prompt them to download harmful content. The goal of this fraud is to steal sensitive information, such as passwords, financial data, or personally identifiable information, and use that information for other purposes, such as identity theft, financial fraud, or ransomware.

A wireless, non contact technology that uses radio waves to transfer data and passively identify a tagged object. RFID systems are usually comprised of an RFID reader, microchip tags, and antennas. The reader gives off radio waves and gets signals back from the tag, while the tag uses radio waves to communicate its identity and other information. The tags are now so small that they can be neatly implanted into paper. They can typically be detected at distances ranging from a few millimetres to several metres. RFID is used in various commercial and industrial applications, including tracking items along a supply chain.

A funds transfer system that allows the transfer of money or securities instantaneously. In most cases, RTGS is used for high-value interbank transactions that need to be cleared as soon as possible.

Refers to payment rails (platforms or networks via which payments are made) that are real-time, or at least very close – initiating, clearing, and settling in a matter of seconds.

A common business process for collecting written information about the capabilities of various suppliers. Normally, an RFI follows a format that can be used for comparative purposes. An RFI is primarily used to gather information to help make a decision on what steps to take next. RFIs are therefore seldom the final stage of procurement and are instead often used in combination with a request for proposal (RFP) and request for quotation (RFQ).

A document that solicits a proposal from suppliers, often as part of a bidding process, by an agency interested in procuring a commodity or service. An RFP is used when a general need or problem must be solved, and potential sellers are proposing solutions and how much they will cost. Companies evaluating an RFP must consider not only the cost but the effectiveness of the solution.

A document that solicits quotations from suppliers often as part of a bidding process, by an agency interested in procuring a commodity or service. An RFQ is used when a quote is needed for a specific need and solution.

Financial assets denominated in foreign currencies and held by central banks, which are primarily used to balance payments.

The informal name of the Bahamian CBDC.

Derived from the French expression seigneuriage, referring to the right of the lord (seigneur) to mint money. In the context of banknotes, seigniorage refers to the interest earned by the central bank when investing funds received via issuance of banknotes at face value, minus the cost of producing, distributing and replacing them.

A self-executing contract with the terms of the agreement between buyer and seller directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralised blockchain network.

A cellular (or mobile) telephone with an integrated computer, camera, and other features not originally associated with a mobile phone.

the fraudulent practice of sending text messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords or credit card numbers.

A cryptocurrency backed by a reserve asset. The backing aims to provide confidence so that stablecoins can be used for instant processing, offering security or privacy but without the volatility of cryptocurrencies such as bitcoin.

The practice of representing information within another message or physical object so that its presence is not evident in human inspection. The advantage of steganography over cryptography alone is that the intended secret message does not attract attention to itself as an object of scrutiny

One of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary holding.

The standard language used to communicate with relational database management systems (ie. systems which store and provide access to data points that relate to one another). SQL statements are used to perform tasks such as updating and retrieving data.

A protocol for arranging the bars and spaces of barcodes for the encoding of numbers, letters and binary numbers.

A representation of another object using a non-representative substitute. A sensitive data element, or valuable item, is represented with a non-sensitive equivalent, referred to as a token, with no extrinsic or exploitable meaning or value. The token acts as a reference (ie. identifier) that maps back to sensitive data through a tokenisation system. 

The transformation of the rights to an asset into digital form (token).

People who do not have a bank account.

People who have a bank account but do not actively use it. For example, they may receive a government benefit payment into the account but they then withdraw it in cash and do not use the account further.

Device designed to allow central bank digital currencies to be held and used offline. This could be a card or a specialised device.

The process of verifying specific identity, document or product attributes, or determining the authenticity of credentials in order to give authorisation for a particular service.

The fraudulent practice of making phone calls or leaving voice messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as bank details and credit card numbers.

A method for proving that a statement is true without offering further information to the verifier, eg. confirming an ID without submitting passport or driving licence documents.

Zero trust assumes there is no implicit trust granted to assets or user accounts based solely on their physical or network location (ie. local area networks versus the internet) or based on asset ownership (enterprise or personally owned).