Personal loss recovery for offline digital cash
"Our analysis shows that automated loss recovery for digital cash through an expiry date could provide substantial benefits to consumers. A potentially important aspect that we consider in the paper is privacy in payments (Garratt and Van Oordt 2021, Borgonovo 2021). While our model does not explicitly account for privacy preferences, results in our paper do suggest that a digital cash that provides more privacy may achieve a higher level of social welfare despite weaker loss recovery. Finally, some consumers may feel uncomfortable with expiring digital cash for reasons that are outside of our economic model. It might therefore be beneficial to consider providing an option to allow users to opt out from automated loss recovery at their own financial risk."
