Last year Japanese card payments network JCB collaborated with identity firm IDEMIA and Malaysia’s Soft Space to launch the JCB Digital Currency pilot (JCBDC). The first phase demonstrated connectivity between existing card and payment infrastructures and a potential central bank digital currency (CBDC). Hence, current point of sale solutions don’t need adaptation. Now the companies are entering the second phase, exploring offline CBDC functionality.
There are two aspects to the pilot. One is enabling mobile wallets to transfer CBDC between them without wifi, by using near field communications (NFC) – tapping phones.
A different scenario assumes that people hold CBDC on a stored value payment card, like a prepaid debit card. In an offline environment they can touch their card against someone’s mobile phone using NFC to transfer funds. In the reverse scenario, someone with a card can receive CBDC by touching their card to a mobile phone.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
