A Technical Examination of Non-Ledger-Based Payment Systems

Yuko Tamura, Masayuki Abe, Tetsuya Okuda, Hiromasa Tsugawa, Toshiyuki Miyazawa, Kazuki Yamamura, Yoshiharu Akahane, Tomoki Taguchi, Yuto Hirakuri, Hiroto Masuda and Kento Yamada
Additional contact information
Yuko Tamura: Institute for Monetary and Economic Studies, Bank of Japan (E-mail: yuuko.tamura@boj.or.jp)
Masayuki Abe: Social Informatics Laboratories, NTT Corporation (E-mail: msyk.abe@ntt.com)
Tetsuya Okuda: Social Informatics Laboratories, NTT Corporation
Hiromasa Tsugawa: Social Informatics Laboratories, NTT Corporation
Toshiyuki Miyazawa: Social Informatics Laboratories, NTT Corporation (currently, Service Innovation Laboratory Group, NTT Corporation)
Kazuki Yamamura: Social Informatics Laboratories, NTT Corporation
Yoshiharu Akahane: Third Financial Sector, NTT DATA Corporation (E-mail: yoshiharu.akahane@nttdata.com)
Tomoki Taguchi: Third Financial Sector, NTT DATA Corporation
Yuto Hirakuri: Third Financial Sector, NTT DATA Corporation
Hiroto Masuda: Third Financial Sector, NTT DATA Corporation
Kento Yamada: Third Financial Sector, NTT DATA Corporation

No 25-E-07, IMES Discussion Paper Series from Institute for Monetary and Economic Studies, Bank of Japan

Abstract: This paper explores a payment system that enables transactions without relying on a ledger or intermediary service providers, examining it from a technical perspective. The system facilitates payments through the transmission and receipt of electronic data, analogous to physical cash. In the field of cryptography, this concept has been studied under the name "electronic cash." While several demonstration experiments were conducted in the 1990s, it is presumed that the technology at the time could not ensure sufficient usability. In this paper, we revisit the concept of electronic cash in light of technological advancements and evolving societal needs. Additionally, we conduct practical verification using smartphones to demonstrate that current technological standards can offer electronic cash systems with high usability. From a technical standpoint, we propose methods to further enhance usability and privacy for electronic cash schemes. These include mechanisms for splitting and aggregating electronic cash into arbitrary amounts, as well as schemes that make it difficult to link electronic cash transactions made by the same user. It should be noted that this paper focuses solely on the technical aspects of electronic cash and does not examine the feasibility of its legal, institutional, or practical implementation in society.

Keywords: digital payments; electronic cash; e-money; privacy protection; smartphone payments (search for similar items in EconPapers)
JEL-codes: L86 L96 (search for similar items in EconPapers)
Date: 2025-08
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