BIS proposes hybrid architecture for retail CBDCs

Golden Finance reported that the Innovation and Digital Economy Consultation Group of the Bank for International Settlements (BIS) suggested adopting a hybrid architecture to build retail Central Bank Digital Money (CBDC), with Central Banks responsible for issuance and governance, and commercial banks providing consumer services. The report proposes a modular approach to design, focusing on the Token model to achieve privacy protection, while also supporting the account-based model, with user identity information kept in private intermediaries to ensure privacy protection. Despite the proposed privacy protection measures, CBDC is still widely considered to be at odds with the concept of Decentralized finance, raising concerns about systemic risks, privacy, and feasibility.