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Posted on Feb 28, 2023Read on Mirror.xyz

Bank of Canada is exploring CBDC for offline payments

The Bank of Canada has released a research report on the use of a central bank digital currency (CBDC) for offline payments. The article stated that these offline CBDC-type payments are more similar to physical banknotes and coins than digital currencies. It enables transactions without the internet, while still allowing online purchases when an internet connection is available. The design of an offline CBDC depends on the duration of the offline period. Offline CBDCs offer benefits to users such as enhanced resilience and better accessibility features. It also protects the privacy usually associated with offline payments. A CBDC must strike a balance between compliance, security requirements, and user needs.