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CBDC Multi-Tier Architecture Overview

Confidence: Certain Updated 2026-05-26 Review by 2026-09-21 Sources 5 Machine-translated Original (JA)
#fintech#cbdc#e-cny#drex#digital-euro#monetary-architecture
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This entry sits under fintech index. Read it with Japan Financial Regulation — Legal Framework for Tokens, Crypto-Assets, and Payments for adjacent context and Japan Stablecoin Legal Framework: Three-layer Structure (JPYC, USDC, Project Pax) for the broader system boundary.

[!info] TL;DR CBDCs (central bank digital currencies) can be classified into 3 paradigms based on issuance architecture: two-tier architecture (central bank → commercial bank → user · China e-CNY etc.), direct CBDC (central bank directly to user · theoretical only), and token-based multi-tier architecture (layered central bank + commercial bank tokenised deposits · Brazil DREX / digital euro etc.). The choice of architecture reflects fundamental judgements by central banks on financial intermediation continuity / monetary sovereignty / privacy / cross-border interoperability.

Key facts

  • As of end-2025, 130+ central banks globally are researching CBDC; 30+ have entered the pilot stage
  • Only 4 countries have formally issued retail CBDCs (China / Brazil / Nigeria / Jamaica)
  • All G10 central banks have chosen two-tier or multi-tier architecture; none has adopted direct CBDC
  • Brazil’s DREX is the most mature commercial experiment in the token-based multi-tier paradigm
  • China’s e-CNY is the largest-scale proof-of-concept for two-tier architecture (cumulative ¥7tn yuan as of 2025)
  • Digital euro holding cap: €3000-4000 (to avoid bank deposit outflows)

Mechanism / How it works

The core difference among the 3 types of architecture lies in the account hierarchy:

DimensionTwo-tierDirectToken-based multi-tier
Number of central bank accountsFew (for commercial banks)Many (for all citizens)Medium (for commercial banks + token pools)
Role of commercial banksComplete (KYC + distribution)Marginalised or eliminatedEvolves into tokenised deposit issuers
PrivacyCommercial banks can see; central bank restrictedCentral bank has full visibilityAdjustable via cryptographic layer
TechnologyAccount-centricAccount or tokenToken + smart contracts
Cross-borderWeakExtremely weakStrong (interoperable with wholesale CBDC)

Political implications of architecture choice: Direct CBDC marginalises commercial banks → breakdown of financial intermediation → central bank takes on credit allocation → politically unacceptable. All major central banks choose to protect the bank deposit base (two-tier or multi-tier). Token-based multi-tier is an emerging middle path that introduces programmability while preserving intermediation by having commercial banks issue tokenised deposits — structurally isomorphic to the logic of Institutional Stablecoin and Deposit-token Thesis.

Origin & evolution

2014 : PBoC begins e-CNY research (the oldest large-scale CBDC project globally). 2017-2019 : Multilateral organisations such as BIS / IMF propose the “central bank digital currency” conceptual framework. 2020 : ECB publishes digital euro report, establishing the “two-tier / direct” dichotomy. 2022.04 : China’s e-CNY pilot expands to 23 cities; two-tier architecture validated at scale. 2023-2024 : Brazil’s DREX (Hyperledger Besu-based) + digital euro legislation begins → token-based multi-tier paradigm matures. 2025-2026 : G10 central banks coordinate wholesale CBDC via Agorá; retail CBDC pursued independently by each country → “architecture choice determines sovereign space” becomes central bank consensus. For the Japan DC-JPY trial, see DC-JPY Overview.

Sources