Visa has released a research paper that describes how government cryptocurrencies can be used to make transactions offline.
Visa has proposed an autonomous payment system for state-owned cryptocurrencies. The paper, titled “Towards a Two-tier Hierarchical Infrastructure: An Autonomous Payment System for Central Banks’ Digital Currencies, ” highlights the benefits of state-owned cryptocurrencies. At the same time, the researchers said that when such currencies become available, they can be used without an Internet connection.
The payment giant has proposed a system that will use “open source technology and public key infrastructure” so that transaction messages can be signed without the need for an internet connection. The proposal describes a protocol that may be developed in the future, but the code for it has not yet been written.
“Recipients will be able to send signed offline payment orders to an authorized wallet provider with guaranteed settlement on these transactions in order to withdraw money from the offline payment system,” the document says.
An autonomous payment system ” creates a user experience similar to paying with cash. But instead of paper in the wallet, there will be bits and bytes in the phone.”
Most major countries are exploring the concept of a state-owned cryptocurrency, and some have already begun to implement it. China is actively testing the capabilities of the digital yuan among the population, Sweden is preparing to switch to the digital crown in 2022, and the Central Bank of the Bahamas launched the Sand Dollar in October.