3. Offline Payments with Crypto

3.1 Importance and Definition

Offline payments with crypto represent a critical aspect of our ecosystem. In regions with limited internet or telecommunications connectivity, the ability to conduct secure and tamper-resistant transactions offline becomes paramount. We explore the policy, design, and technological considerations involved in enabling offline payments.

3.2 Main Reasons for Offline Payments

• Resilience:

Offline payments enhance the overall resilience of the payment system, allowing it to operate for a period without connectivity.

• Cash Resemblance:

Mimicking the user experience of physical cash payments, offline crypto transactions offer familiarity and privacy.

• Inclusion:

Offline payments provide an alternative in regions with limited internet connectivity, ensuring access for the unbanked population.

• Universal Access:

Ensuring universal access to financial services, offline payments cater to regions where cash remains the primary form of payment.

• Trust:

Offline payments foster citizens' trust in crypto by offering reliability and availability, whether online or offline.

• Peer-to-Peer and Person-to-Business Payments:

Offline payments facilitate direct value exchange between individuals and businesses, minimizing third-party intervention.