PaymentChannelClient support for encrypted wallets. 

If a wallet is encrypted, we found that payment channels do not work. This solution aims to make it possible for a user to provide password when a channel is created and when the channel is incremented. This proposal only enables client wallets to be encrypted.
Yes please take this out, it will result in stack traces for normal network instability events. Good catch @schildbach 

Rather than logging a stack trace we could just do:

t.getMessage() != null ? t.getMessage() : t.getClass().getName()

to present a better log line.