Technology Solutions to Support Central Bank Digital Currency with Limited Connectivity: A Review of Existing Approaches
Fintech Notes, August 7, 2025
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- Technology Solutions to Support Central Bank Digital Currency with Limited Connectivity: A Review of Existing Approaches
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Bibliographic details
- Authors: Hervé Tourpe, John Kiff, Majid Malaika, Chris Ostrowski
- Published: August 7, 2025
- Series: Fintech Notes
- DOI: https://doi.org/10.5089/9798229017435.063
Overview and publication
- Authors: Hervé Tourpe, John Kiff, Majid Malaika, Chris Ostrowski
- Date: August 7, 2025
- Series: Fintech Notes No 2025/005
- Issue: 005
- Volume: 2025
- Pages: 38
- DOI: https://doi.org/10.5089/9798229017435.063
- ISBN: 9798229017435
- ISSN: 2664-5912
Key findings
- Environments with limited connectivity require offline CBDC solutions to enhance financial inclusion.
- No single architecture fits all use cases; multiple technological approaches are needed.
- Robust offline payment systems can foster resilience and inclusivity in financial systems.
- Critical considerations for offline CBDC implementations include form factor of devices, operational risks, and privacy issues associated with offline transactions.
- Security measures and user experience are central to the design of effective offline CBDC systems.
- Continuous stakeholder engagement and adaptation to evolving technologies are necessary for successful deployment.
Scenarios and technological approaches discussed
- Stored-value card systems that hold value offline and enable transactions without constant internet access.
- Device-to-device payment methods enabling peer-to-peer transactions in the absence of network connectivity.
- A diversity of technological solutions is emphasized rather than a single prescribed architecture.
- Privacy-enhancing technology considerations for offline transactions.
Operational and design considerations
- Form factor of devices: physical design and ergonomics affecting usability and adoption.
- Operational risks: management of offline value synchronization, fraud, reconciliation, and contingency processes.
- Privacy issues: preserving user privacy while enabling offline transactions and necessary oversight.
- Security measures: hardware security, protocol security, and end-user protections tailored to offline modes.
- User experience: designing interfaces and flows that are intuitive for populations with limited digital literacy.
Policy recommendations and implementation guidance
- Prioritize diverse technological solutions suited to local contexts rather than a one-size-fits-all approach.
- Build robust security and privacy safeguards appropriate for offline transaction modes.
- Engage continuously with stakeholders—including central banks, payment providers, and end users—to adapt systems as technologies evolve.
- Emphasize inclusivity and resilience as core objectives when designing offline CBDC capabilities.
- Consider stored-value cards and device-to-device methods as viable complementary approaches to online CBDC architectures.
Subject keywords and thematic focus
- Central Bank digital currencies, Central Banks, Environment, Financial markets, Money, Payment systems, Technology
- Keywords: CBDC, Central Bank digital currencies, device-to-device payments, financial inclusion, hardware security, I. connectivity scenario, IMF FINTECH note 2025/005, offline solutions, privacy-enhancing technology, stored-value cards, Sub-Saharan Africa, user experience
Source: Technology Solutions to Support Central Bank Digital Currency with Limited Connectivity: A Review of Existing Approaches, Fintech Notes 2025/005 (August 7, 2025).
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- Ftnea2025005