Visa looks at offline payments for digital currencies

A news report in Finextra reveals that Visa has published a technical paper on “offline point-to-point payments between two devices.” The card company says it would be a means for central banks “to replicate the physical exchange of cash using digital currencies.”

This comes in the wake of a slew of central banks considering the issuance of a CBDC. Any design of these will need to include a framework for the exchange of digital currencies without either person involved having to have an Internet connection.

The Visa protocol outlines a method whereby digital currencies can be directly downloaded to a personal device, and stored in secure hardware embedded in the device, but managed by one of the wallet providers. In this way CBDC can be sent from one device to another without a bank as intermediary, or any other payment networks.

Visa says in its technical paper: “To facilitate the secure issuance and transfer of CBDC, we envision a CBDC design under a two-tier hierarchical trust infrastructure, which is implemented using public-key cryptography with the central bank as the root certificate authority for generating digital signatures, and other financial institutions as intermediate certificate authorities. One important design feature for CBDC that can be developed under this hierarchical trust infrastructure is an offline capability to create secure point-to-point offline payments through the use of authorized hardware. An offline capability for CBDC as digital cash can create a resilient payment system for consumers and businesses to transact in any situation.”

Visa envisages that this system would be ideal in places where Internet connections are poor and/or intermittent, and where full access is only available at places like Internet cafes.




Creditum is the mobile application integrating regular cash with Crypto, Holding, Buying, Exchanging and Spending

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Write up: TryHackMe CTF Pickle Rick

PAD Whitepaper Version 0.5

Protect yourselves from Scammers!

OpenSSH CVE-2018–15473 User Enumeration Vulnerability

Your Software Is At Risk.

Anima: the decentralized identity protocol

Download In #&PDF Securing the Perimeter: Deployin

Listed on Coinhunt top5 Right now!!!


Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store

Creditum is the mobile application integrating regular cash with Crypto, Holding, Buying, Exchanging and Spending

More from Medium

Extreme sophistication of strategy coupled with an influencing ability on steroids will change Wall…

Young, smart, Venture Capital

Should banks offer crypto products?

Identifying Your Long-term Financial Goals. Also why banks suck.