Last year, Japanese card payments network JCB joined forces with identity firm IDEMIA and Malaysia’s Soft Space to introduce the JCB Digital Currency pilot (JCBDC). After successfully demonstrating connectivity between existing card and payment infrastructures and a potential central bank digital currency (CBDC) in the first phase, the partners are now advancing to the second phase to explore offline CBDC functionality.
The pilot encompasses two primary aspects. Firstly, it aims to enable mobile wallets to transfer CBDC without requiring Wi-Fi, leveraging near field communications (NFC) through phone tapping. This method ensures compatibility with existing point of sale solutions, eliminating the need for adaptation.
In a different scenario, individuals holding CBDC on a stored value payment card, similar to a prepaid debit card, can transfer funds in an offline environment. This can be achieved by tapping their card against someone’s mobile phone using NFC. The reverse scenario allows someone with a card to receive CBDC by touching their card to a mobile phone.
IDEMIA, renowned for its expertise in offline CBDC solutions, is a key partner in this initiative. Additionally, Soft Space brings its Tap on Mobile SoftPOS solution for point of sale contactless payments to the collaboration.
Romain Zanolo, IDEMIA Managing Director APAC Payment Services, expressed confidence in providing the public with the flexibility to transfer funds offline, whether with a contactless card or a mobile phone, offering a broader range of choices.
IDEMIA’s previous collaborations, such as winning the G20 TechSprint in the financial inclusion category with Bitt, and participating in an Indian project for offline CBDC using feature phones, underscore its commitment to advancing secure and versatile digital transactions.
JCB, with a history of collaborations exploring blockchain and digital currencies, continues to play a pivotal role in fostering innovation in the financial technology landscape. Partnerships with entities like Datachain and MUFG demonstrate JCB’s dedication to exploring blockchain interoperability and supporting stablecoins across different blockchains.
