A conceptual model for point-of-sale payment with retail central bank digital currency

Like many central banks, the European Central Bank is pushing forward with the introduction of a central bank digital currency (CBDC). The digital euro is designed for retail use cases, to include peer-to-peer and merchant payments. Many different form factors are supported, with a focus on offline capabilities. While the picture is clear about how users will access and obtain CBDC, the acceptance side remains to be fully understood. This paper analyses the technical background of CBDC wallets and proposes a conceptual model for introducing CBDC payments to consumers.