The currency will be mined internally. The blockchain would help with the offline transactions.
I still don't get why you need a blockchain. The purpose of the blockchain in Bitcoin is precisely to be a decentralised timestamping mechanism, so that double spends can be prevented. If you control everything and only mine internally, you don't have to mine at all.
As far as I can think of, blockchain and offline transactions are totally orthogonal. Can you give more details how a blockchain helps with the latter?