Joachim Samuelsson is CEO and board member at publicly-listed Swedish deep tech company Crunchfish. Joachim is a tech pioneer and a serial entrepreneur with many patents in digital payments and mobile technology. He has a Master of Science degree from 1998 in Industrial Engineering and Management from Linköping University.

Crunchfish is a deep tech company developing a device-agnostic trusted client application platform for offline payments, tokenized card payments as well as other mobile client / server systems. Crunchfish has been listed on Nasdaq in Stockholm since 2016, with headquarters in Malmö and a subsidiary in India.

Function before form: Assumptions to avoid when designing retail CBDC systems

Retail CBDC systems are challenging to implement in practice. There are many features of cash that are desirable to replicate digitally. This presentation highlights the drawbacks of making pre-mature assumptions on form, such as representing CBDC as a digital banknote and using hardware-based secure elements in mobile devices, as it inevitably leads to limitations on function. A layer-2 solution with trusted client applications within virtual secure elements are presented as superior forms for implementing the functions of offline payment and privacy in retail CBDC systems.

Panel discussion : Offline payments with CBDC

The implementation of offline payments in retail CBDCs presents both significant challenges and essential benefits.

Challenges include ensuring robust security and privacy in transactions without online verification, which is critical to prevent fraud and unauthorized access. Developing reliable, secure hardware or software solutions that can function without an internet connection is technologically demanding. Additionally, creating a universally accepted offline payment system requires infrastructure upgrades and compatibility across diverse devices and platforms. There's also the issue of maintaining transaction limits and monitoring for compliance with financial regulations, all while offline.

Despite these challenges, the importance of offline payment capabilities in CBDCs cannot be overstated. They enhance financial inclusion by providing access to digital payments in areas with limited internet connectivity, thus reaching underserved populations. Offline functionality also ensures transaction continuity during network outages or in emergencies, supporting resilience in payment systems. Moreover, it offers a level of convenience and privacy for users, promoting broader adoption of CBDCs. Ultimately, developing robust offline payment solutions is vital for a resilient, inclusive, and widely usable CBDC ecosystem.