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GNU Taler news: Why a Digital Euro should be Online-first and Bearer-based

Submitted by Roy Schestowitz on Monday 29th of March 2021 10:30:21 PM Filed under
GNU

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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