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Nordic Innovation Center of BIS Seeks Offline Functions in CBDC

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It is reported that the Nordic department of the Innovation Center of the Bank for International Settlements is inviting technology suppliers to submit the ide…

Nordic Innovation Center of BIS Seeks Offline Functions in CBDC

It is reported that the Nordic department of the Innovation Center of the Bank for International Settlements is inviting technology suppliers to submit the idea of implementing offline functions in the future central bank digital currency. Many central banks considering the potential implementation of CBDC consider the offline function as an important requirement for reasons including flexibility, crisis, financial inclusion, cash similarity, privacy, accessibility, etc. By inviting technology suppliers to submit their suggestions, the Nordic Center hopes to guide the central bank to understand the applicability, applicability and readiness of various available solutions, risks and trade-offs, and the maturity of technology.

BIS Innovation Center invites suppliers to submit offline CBDC technology

Interpretation of the news:


The Innovation Center of the Bank for International Settlements (BIS) is proactively addressing the potential implementation of Central Bank Digital Currency (CBDC) offline functions, as Nordic department invites technology suppliers to submit their suggestions. Many central banks view the offline function as significant due to its flexible and crisis-oriented nature, along with financial inclusion, privacy, accessibility, and cash similarity. As a result, the Nordic Innovation Center hopes to guide the central bank regarding the feasibility and readiness of available solutions, risks and trade-offs, as well as the maturity of technology.

The message highlights the significance of offline functions in CBDC and the central banks’ interest in developing a flexible and reliable digital currency. The offline function involves allowing the CBDC to operate even without an internet connection, which is a critical requirement when it comes to financial inclusion, especially in underdeveloped remote areas.

Moreover, offline functions provide a viable alternative to traditional banks during a financial crisis, allowing access to funds despite the possible breakdown of online systems. In addition, offline functions ensure users’ privacy as it restricts tracking, making it indistinguishable from physical cash.

The Nordic Innovation Center’s move to invite technology suppliers indicates its proactive strategy of developing a feasible solution for central banks to implement CBDC’s offline function. Through this initiative, the center seeks to guide the central bank in its decision-making process by understanding the available solutions’ applicability, risks, trade-offs, and maturity. This, in turn, will lead to a credible and trustworthy offline CBDC solution that can withstand technological disruptions, thus restoring the public’s faith in the currency.

In conclusion, this news represents an important step towards the evolution of a viable offline function in CBDC, which aims to address the requirements of the modern financial landscape. The initiative by the Nordic Innovation Center of BIS suggests a focused approach in achieving the development of a stable digital currency that can compete with physical cash.

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