Visa has proposed an offline payment system solution for central bank digital currencies, that will allow consumers and businesses to create a secure point-to-point offline payment even if they are unable to connect to payment intermediaries or even the Internet.

According to a research paper titled “Towards a Two-Tier Hierarchical Infrastructure: An Offline Payment System for Central Bank Digital Currencies” published by Visa, the offline payment system will be powered by public-key cryptography, while only the central bank and other financial institutions will be the root certificate authority for generating digital signatures. 

“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,” the report reads.

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The solution promises to create a system where digital payment can take place using CBDC irrespective of connectivity of users to the internet and payment intermediaries.

“We propose an offline payment system (OPS) protocol for CBDC that allows a user to make digital payments to another user while both users are temporarily offline and unable to connect to payment intermediaries (or even the Internet),” the report added.

The report went on to reveal that “OPS can be used to instantly complete a transaction involving any form of digital currency over a point-to-point channel without communicating with any payment intermediary, achieving virtually unbounded throughput and real-time transaction latency.”