A money view of offline payment functionality
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- Assistant-level AI agents can reproduce basic cash-management heuristics, including precautionary liquidity management, payment prioritization, and liquidity–delay trade-off in stylized RTGS scenarios.
- The agent’s responses are broadly consistent in simple settings, but consistency weakens as scenarios become more complex, highlighting the need for benchmarks and further assessment.
- The results point to a promising role for AI in payment operations, but realistic use may require purpose-built tuning, rigorous benchmarks, and clearly defined governance controls.
The work of central banks on central bank digital currency often includes offline payment functionality, where individuals and merchants can conduct transactions without online connectivity. This is comparable with cash: a bearer instrument that is a liability of the central bank. Therefore, the impact of offline central bank digital currency on balance sheets is well understood. Lately, there have been proposals to equip other types of payment systems, such as instant payment systems, with offline functionality. This would involve commercial banks and private money, making the situation less clear. Would each bank issue its own offline token? Would the resulting liabilities be fungible? In this paper, we look at different possible models and take an opinionated view on what a practical offline-capable instant payment system should look like.
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