CBDC Architecture Models
Design choices that shape digital currency systems
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0 / 5 completedDesigning Digital Currency Systems
CBDC architecture is not one-size-fits-all. Central banks face fundamental design choices that determine privacy, efficiency, resilience, and control. These decisions shape how digital currency integrates with existing financial systems.
Three Core Design Questions
Single-tier (central bank only) vs two-tier (banks as intermediaries)
Account-based (like bank accounts) vs token-based (like digital cash)
Centralized database vs distributed ledger technology
Why Architecture Matters
Privacy Trade-offs
Account-based systems enable AML compliance but reduce anonymity. Token-based offers more privacy but challenges regulation.
Performance Impact
Centralized systems handle millions of TPS. Distributed ledgers sacrifice speed for resilience.
Resilience vs Control
Two-tier systems distribute risk across banks. Single-tier centralizes control but creates single point of failure.
Economic Structure
Architecture determines if banks earn fees, who controls monetary policy tools, and systemic risk distribution.
Every architectural choice involves trade-offs. China's digital yuan prioritizes control and surveillance. Sweden's e-krona focuses on privacy and offline capability. The architecture reflects national priorities and values.