BIS proposes a mixed architecture suggestion for retail CBDC

The Innovation and Digital Economy Advisory Group of the Bank for International Settlements (BIS) suggests adopting a hybrid architecture to build retail Central Bank Digital Currency (CBDC), with central banks responsible for issuance and governance, and commercial banks providing consumer services. The report proposes a modular design approach, focusing on token-based models to achieve privacy protection while supporting account-based models where user identity information is retained by private intermediaries for privacy protection. Despite proposed privacy measures, CBDC is widely considered contrary to the concept of decentralized finance, raising concerns about systemic risk, privacy, and feasibility.