Abstract
The widespread reliance on paper-based currency poses significant drawbacks, such as counterfeiting, lack of transparency, and environmental impacts. While Central Bank Digital Currencies (CBDCs) address many of these issues, their dependence on continuous internet connectivity limits their usability in scenarios with poor or no network access. To overcome such limitations, this paper introduces ElasticPay, a novel Peer-to-Peer (P2P) Offline Digital Payment System that leverages advanced hardware security measures realised through Trusted Platform Modules (TPMs), Trusted Execution Environments (TEEs), and Secure Elements (SEs). ElasticPay ensures transaction privacy, unforgeability, and immediate settlement while preventing double spending. Our approach integrates robust recovery mechanisms and provides a scalable solution for diverse environments. Extensive experimentation validates the system's reliability and practicality, highlighting its potential to advance secure and inclusive CBDC ecosystems. We demonstrate the proposed solution implementation on the iPhone mobilephone because it has an inbuilt Secure Enclave, which is an integrated implementation of the necessary TPM, TEE, and SE functionalities.