I think you guys don't realise that ability to do off-chain transactions electronically already exists:
https://bitcointalk.org/index.php?topic=321085.0It is quite easy to extend this system to do off-line NFC transactions also (in fact the creator of the project intends to implement this I believe).
The way these off-chain transaction work is basically an electronic equivalent of a Casascius coin. A Casascius coin is a physical token with a private key that remains hidden (unless revealed- in which case the reveal will be evident) so that the token can be exchanged like a normal fait coin. Where-as in this system linked above the private key is stored on an SD card and remains hidden on the card . To perform a transaction the SD card will copy the key to another similar SD card without ever revealing the key to anything else and deletes its original copy. To reclaim the money on the blockchain the SD card will reveal the private key and deletes it own copy.
The important thing to notice about this above system it that it is off-chain, completely anonymous and totally free to make the transactions. However, currently the software that handles the exchange does need to be aware of the current state of the block-chain (the SD card itself only stores the private key so it doesn't know what balance- if any- is associated with it) so the software needs to determine what the balance is by looking at the blockchain or by using a 3rd party such a blockchain.info. Although, even this requirement will most likely be lifted in future revisions of the software because at the time of loading the SD card with the key the software can electronically sign the balance that is associated with it. At this point it will be: off-chain, off-line, completely anonymous and totally free.
It's interresting idea but definitely not the same.
To describe the OtherCoin idea figuratively let's imagine the cloakroom. You put money inside, close it with only one key. Then you just transfer this key.
But as I wrote in the first massege there are some required features of money (if a thing does not posses at least one of this features it means that we can't consider it as full featured money)
"Unit of account
To function as a 'unit of account', whatever is being used as money must be: Divisible into smaller units without loss of value; precious metals can be coined from bars, or melted down into bars again".
As I understood from the description user can't divide them (it is in the cloakroom!) . There is no small coin feature. Maybe only if you make many smartcards with different nominal value...
I'm not sure it's a good idea. It's better to have one card (NFC) with small coins inside