The BIS Innovation Hub has published a handbook on offline central bank digital currency (CBDC) payments which explores the motivations, risks and potential solutions as part of Project Polaris. It’s generally accepted that offline CBDC presents higher risks than an online version because double spending and counterfeiting are easier in the absence of online checks. However, these are not the only risks.
The paper also highlights the challenge for business models that make an offline CBDC attractive to both merchants and consumers.
There are some interesting central bank survey statistics. Forty-nine percent of central banks believe offline functionality is essential for a CBDC and another 49% see it as advantageous.
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