CBDC Architecture Models

Design choices that shape digital currency systems

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Central Bank Digital Currencies

Designing 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

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Who manages accounts?

Single-tier (central bank only) vs two-tier (banks as intermediaries)

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How is value represented?

Account-based (like bank accounts) vs token-based (like digital cash)

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What technology foundation?

Centralized database vs distributed ledger technology

Why Architecture Matters

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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.

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Resilience vs Control

Two-tier systems distribute risk across banks. Single-tier centralizes control but creates single point of failure.

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Economic Structure

Architecture determines if banks earn fees, who controls monetary policy tools, and systemic risk distribution.

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No Perfect Solution

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.