Visa has released a research paper that outlines how government cryptocurrencies can be used to conduct offline transactions.
Visa has offered an offline payment system for government cryptocurrencies. The paper, titled Towards a Two-Tier Hierarchical Infrastructure: An Autonomous Payment System for Central Banks Digital Currencies, highlights the benefits of government-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 no code has yet been written for it.
“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 offline payment system “creates a user experience similar to paying in cash. But instead of paper, the wallet will have bits and bytes on the phone. ”
Most of the major countries are exploring the concept of a government cryptocurrency, and some have already begun to implement it. China is actively testing the possibilities of the digital yuan among the population, Sweden is preparing to move to the digital crown in 2022, and the Central Bank of the Bahamas launched the Sand Dollar in October.
