From 9a6e7c57484e16bdd3f4aa917e6489048fb242d0 Mon Sep 17 00:00:00 2001
From: Florian Dold
-We are happy to announce the publication of our paper on "Why a Digital Euro should be Online-first and Bearer-based".
-
-The European Central Bank’s “Report on a Digital Euro” considers
-two distinct types of designs for a digital euro. It argues that all functional
-requirements laid out in the report can be fulfilled by operating the two systems
-in parallel:
-2021-3: "Why a Digital Euro should be Online-first and Bearer-based
-" published
-
-
-The report does not discuss other choices of hybrid systems. However, the
-choice is more arbitrary than it might seem at first sight: bearer-based systems
-are not necessarily offline payment systems, and online payment systems do not
-need to exclude anonymity.
-
-We argue that operating a bearer-based payment system to complement an -account-based CBDC in order to gain offline and privacy features is not a good -trade-off. Adding permanent, regular offline capabilities via the bearer-based -payment instrument constantly exposes the CBDC to the severe issues inherent -in offline-capable payment systems. Instead, the offline mode of operation -should be restricted to scenarios where it is actually required, which mitigates -the risks. -
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