Technology Solutions to Support Central Bank Digital Currency with Limited Connectivity: A Review of Existing Approaches

Author: Hervé Tourpe, Mr. John Kiff, Majid Malaika, and Chris Ostrowski

This note analyzes offline solutions for central bank digital currencies in low-connectivity areas, focusing on stored-value cards and device-to-device payments. It emphasizes security, user experience, and the need for diverse technological approaches.

Volume/Issue: Volume 2025 Issue 005

Publication date: August 2025

ISBN: 9798229017435

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Money and Monetary Policy , CBDC , offline solutions , financial inclusion , stored-value cards , device-to-device payments , security , user experience , Fintech , Central Bank digital currencies

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Summary

This note explores the implementation of central bank digital currencies in environments with limited connectivity, emphasizing the need for offline solutions to enhance financial inclusion. It discusses various scenarios, such as stored-value card systems and device-to-device payment methods, which allow transactions without constant internet access. Key considerations include the form factor of devices, operational risks, and privacy issues associated with offline transactions. The note highlights the importance of security measures, diverse technological solutions, and user experience in the design of these systems. It explains that no single architecture fits all use cases, underscoring the need for continuous stakeholder engagement and adaptation to evolving technologies. Ultimately, the report advocates for robust offline payment systems that can effectively meet the challenges of limited connectivity while fostering resilience and inclusivity in financial systems.