In a groundbreaking move that could reshape the landscape of cross-border
payments, Japan’s global payment giant, JCB, has joined forces with identity
technology firm IDEMIA and Malaysian fintech company Soft Space to launch the
second phase of the JCB Digital Currency (JCBDC) project. This initiative aims
to take Central Bank Digital Currencies (CBDCs) to new heights, particularly in
enhancing financial inclusion and payments efficiency.
Phase 1 Success and the Leap to Phase 2
In the initial
phase, the trio successfully developed a CBDC payment solution, allowing
merchants to seamlessly accept CBDC without modifying their point-of-sale
terminals and payment cards. This innovative solution underwent a successful
pilot in Tokyo in 2023, paving the way for the ambitious Phase 2. Now, the
project takes a significant leap forward by introducing offline peer-to-peer
(P2P) fund transfers, even in the absence of an internet connection.
Offline P2P: Revolutionizing CBDC Accessibility
One of the
standout features of the JCBDC Phase 2 project is its focus on offline P2P fund
transfers, addressing a crucial aspect of financial inclusion. Users will be
able to transfer CBDC funds from one person to another seamlessly using their
cards and mobile phones, even without internet connectivity. This offline
capability opens new avenues for accessibility, making CBDC transactions
possible anytime, anywhere, providing an immediate guarantee of fund availability.
Two Distinct Options for Offline Transfers
The project
introduces two user-friendly options for offline CBDC transfers. The first
option allows consumers to send funds by tapping one person’s card to another
person’s mobile NFC device, creating a secure and direct connection for
transactions. The second option involves transferring funds directly between
two mobile NFC devices. This innovative approach mimics the simplicity of
physical cash transactions, ensuring the security and convenience of CBDC
funds, even in an offline environment.
Compliance with WLA Standards and Cutting-Edge Technology
To ensure the utmost security, the JCBDC project aligns with the open White
Label Alliance (WLA) payment standard. IDEMIA and Soft Space contribute their
expertise by providing the tokenization back-end server, mobile wallet
application, card application, and SoftPOS solution. This collaborative effort
leverages IDEMIA’s protocol, an industry standard for offline CBDC payments,
and capitalizes on Soft Space’s…
