CBDC News

Offline Complexity Revealed

Sweden’s Riksbank has issued its latest CBDC phase review. This fourth phase built on a previous phase that trialled offline token-based payments to explore an offline e-Krona based on account balances.

The conclusion was that while such an approach is possible, it brings with it significant security challenges. Addressing these challenges can, in some circumstances, make the CBDC less convenient.

Inconvenience: Mobile phones are not seen as being sufficiently secure to be the sole offline payment device. Cards, therefore, are preferred because the EMV standard they use is stored on the card and can’t be altered. The Riksbank limits the code to a maximum wallet amount of SEK 3,000 ($286) and a maximum of five consecutive offline transactions before the card is connected to the account through the internet. The only way to change these limits is to issue a new card.