Zero-Knowledge Proof (ZKP) Authentication for Offline CBDC Payment System Using IoT Devices

• URL: http://arxiv.org/abs/2603.03804v2
• Date: Thu, 05 Mar 2026 13:51:30 GMT
• Title: Zero-Knowledge Proof (ZKP) Authentication for Offline CBDC Payment System Using IoT Devices
• Authors: Santanu Mondal, T. Chithralekha,
• Abstract summary: offline CBDC ecosystems will provide financial inclusion, empower underserved communities, and ensure equitable access to digital payments.<n> Integrating offline CBDC payment with IoT devices enables seamless, automated payment without internet connectivity.<n>This work proposes a privacy-preserving offline CBDC model with integrated secure elements (SEs), zero-knowledge proofs (ZKPs), and intermittent synchronisation to conduct offline payments on IoT hardware.
• Score: 0.0
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Central Bank Digital Currency (CBDCs) are becoming a new digital financial tool aimed at financial inclusion, increased monetary stability, and improved efficiency of payment systems, as they are issued by central banks. One of the most important aspects is that the CBDC must offer secure offline payment methods to users, allowing them to retain cash-like access without violating Anti-Money Laundering and Counter-terrorism Financing (AML/CFT) rules. The offline CBDC ecosystems will provide financial inclusion, empower underserved communities, and ensure equitable access to digital payments, even in connectivity-poor remote locations. With the rapid growth of Internet of Things (IoT) devices in our everyday lives, they are capable of performing secure digital transactions. Integrating offline CBDC payment with IoT devices enables seamless, automated payment without internet connectivity. However, IoT devices face special challenges due to their resource-constrained nature. This makes it difficult to include features such as double-spending prevention, privacy preservation, low-computation operation, and digital identity management. The work proposes a privacy-preserving offline CBDC model with integrated secure elements (SEs), zero-knowledge proofs (ZKPs), and intermittent synchronisation to conduct offline payments on IoT hardware. The proposed model is based on recent improvements in offline CBDC prototypes, regulations and cryptographic design choices such as hybrid architecture that involves using combination of online and offline payment in IoT devices using secure hardware with lightweight zero-knowledge proof cryptographic algorithm.

Related papers

• Balancing Compliance and Privacy in Offline CBDC Transactions Using a Secure Element-based System [0.6157382820537719]
  This paper introduces a prototype for offline digital currency payments, equally applicable to cryptocurrencies and CBDCs.<n>Performance evaluation results suggest that the prototype can be flexibly adapted to different regulatory environments.<n>We conceptualize how the integration of Zero-Knowledge Proofs into our design could accommodate various tiers of enhanced privacy protection.
  arXiv  Detail & Related papers  (2025-09-29T20:19:31Z)
• Immutable Digital Recognition via Blockchain [1.8437748021744547]
  This study proposes innovative solutions to address the deficiencies in traditional electronic token systems.<n>The solutions are based on distributed storage, anti-tampering mechanisms, consensus protocols, and transparent, traceable storage.<n>The developed solution enables the full utilisation of blockchain technology's advantages while also fostering community participation.
  arXiv  Detail & Related papers  (2025-08-26T07:27:12Z)
• Quantum-Resilient Privacy Ledger (QRPL): A Sovereign Digital Currency for the Post-Quantum Era [0.0]
  Quantum-Resilient Privacy Ledger (QRPL) is a token-based digital currency architecture that incorporatesNIST-standardised post-quantum cryptography (PQC) with hash-based zero-knowledge proofs to ensure user sovereignty, scalability, and transaction confidentiality.<n> QRPL aims to address critical shortcomings in prevailing CBDC designs, including risks of pervasive surveillance, with a 10-20 second block time to balance security and throughput in future monetary systems.
  arXiv  Detail & Related papers  (2025-07-11T23:02:45Z)
• SecurePay: Enabling Secure and Fast Payment Processing for Platform Economy [9.537146822132906]
  We introduce SecurePay, a secure, yet performant payment processing system for platform economy.<n>SecurePay combines permissioned blockchain with central bank digital currency (CBDC) to ensure fund security, information security, and resistance to collusion by intermediaries.<n>Experiments conducted on personal devices demonstrate a throughput of 256.4 transactions per second and an average latency of 4.29 seconds.
  arXiv  Detail & Related papers  (2025-05-23T04:47:25Z)
• Deep Learning Approaches for Anti-Money Laundering on Mobile Transactions: Review, Framework, and Directions [51.43521977132062]
  Money laundering is a financial crime that obscures the origin of illicit funds.<n>The proliferation of mobile payment platforms and smart IoT devices has significantly complicated anti-money laundering investigations.<n>This paper conducts a comprehensive review of deep learning solutions and the challenges associated with their use in AML.
  arXiv  Detail & Related papers  (2025-03-13T05:19:44Z)
• ACRIC: Securing Legacy Communication Networks via Authenticated Cyclic Redundancy Integrity Check [98.34702864029796]
  Recent security incidents in safety-critical industries exposed how the lack of proper message authentication enables attackers to inject malicious commands or alter system behavior.<n>These shortcomings have prompted new regulations that emphasize the pressing need to strengthen cybersecurity.<n>We introduce ACRIC, a message authentication solution to secure legacy industrial communications.
  arXiv  Detail & Related papers  (2024-11-21T18:26:05Z)
• SPOQchain: Platform for Secure, Scalable, and Privacy-Preserving Supply Chain Tracing and Counterfeit Protection [46.68279506084277]
  This work proposes SPOQchain, a novel blockchain-based platform that provides comprehensive traceability and originality verification. It provides an analysis of privacy and security aspects, demonstrating the need and qualification of SPOQchain for the future of supply chain tracing.
  arXiv  Detail & Related papers  (2024-08-30T07:15:43Z)
• PayOff: A Regulated Central Bank Digital Currency with Private Offline Payments [13.78379361552975]
  The European Central Bank is preparing for the potential issuance of a central bank digital currency (CBDC), called the digital euro. offline payments are expected to enable cash-like privacy, local payment settlement, and the enforcement of holding limits. This paper presents PayOff, a novel CBDC design motivated by the digital euro regulation, which focuses on offline payments.
  arXiv  Detail & Related papers  (2024-08-13T15:15:06Z)
• Towards Credential-based Device Registration in DApps for DePINs with ZKPs [46.08150780379237]
  We propose a credential-based device registration (CDR) mechanism that verifies device credentials on the blockchain. We present a general system model, and technically evaluate CDR using zkSNARKs with Groth16 and Marlin.
  arXiv  Detail & Related papers  (2024-06-27T09:50:10Z)
• IT Strategic alignment in the decentralized finance (DeFi): CBDC and digital currencies [49.1574468325115]
  Decentralized finance (DeFi) is a disruptive-based financial infrastructure. This paper seeks to answer two main questions 1) What are the common IT elements in the DeFi? And 2) How the elements to the IT strategic alignment in DeFi?
  arXiv  Detail & Related papers  (2024-05-17T10:19:20Z)
• DynamiQS: Quantum Secure Authentication for Dynamic Charging of Electric Vehicles [61.394095512765304]
  Dynamic Wireless Power Transfer (DWPT) is a novel technology that allows charging an electric vehicle while driving. Recent advancements in quantum computing jeopardize classical public key cryptography. We propose DynamiQS, the first post-quantum secure authentication protocol for dynamic wireless charging.
  arXiv  Detail & Related papers  (2023-12-20T09:40:45Z)
• Demonstration of quantum-digital payments [36.136619420474766]
  We show how quantum light can secure daily digital payments by generating inherently unforgeable quantum cryptograms. Unlike previously proposed protocols, our solution does not depend on long-term quantum storage or trusted agents and authenticated channels. It is practical with near-term technology and may herald an era of quantum-enabled security.
  arXiv  Detail & Related papers  (2023-05-23T20:20:14Z)
• Regulation conform DLT-operable payment adapter based on trustless - justified trust combined generalized state channels [77.34726150561087]
  Economy of Things (EoT) will be based on software agents running on peer-to-peer trustless networks. We give an overview of current solutions that differ in their fundamental values and technological possibilities. We propose to combine the strengths of the crypto based, decentralized trustless elements with established and well regulated means of payment.
  arXiv  Detail & Related papers  (2020-07-03T10:45:55Z)

This list is automatically generated from the titles and abstracts of the papers in this site.

This site does not guarantee the quality of this site (including all information) and is not responsible for any consequences.