A money view of offline payment functionality

Lars Hupel

Journal of Financial Market Infrastructures

Abstract: The work of central banks on central bank digital currency often includes offline payment functionality, where individuals and merchants can conduct transactions without online connectivity. This is comparable with cash: a bearer instrument that is a liability of the central bank. Therefore, the impact of offline central bank digital currency on balance sheets is well understood. Lately, there have been proposals to equip other types of payment systems, such as instant payment systems, with offline functionality. This would involve commercial banks and private money, making the situation less clear. Would each bank issue its own offline token? Would the resulting liabilities be fungible? In this paper, we look at different possible models and take an opinionated view on what a practical offline-capable instant payment system should look like.

References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.risk.net/journal-of-financial-market-i ... ayment-functionality (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rsk:journ7:7963908

Access Statistics for this article

More articles in Journal of Financial Market Infrastructures from Journal of Financial Market Infrastructures
Bibliographic data for series maintained by Thomas Paine ().