Blog | M10

In discussions about central bank digital currencies (CBDCs), the term “two-tier model”, or some variant of it is frequently used. Unfortunately, the two-tier term is confusing as it can have very different implications.

In several analyses of CBDC infrastructure and models, the issue of whether to use an account-based or token-based (aka value-based) CBDC is discussed. However, for any practical purposes I fail to see the relevance of this distinction in most discussions.