Account based CBDC

An Account-Based CBDC links digital currency directly to users' accounts at the central bank or licensed financial institutions. Unlike Token-Based CBDCs, ownership of the currency is tracked by managing account balances rather than transferring tokens. Bits & Blocks offers advanced Account-Based CBDC solutions to central banks and financial institutions, providing robust platforms for managing account-linked digital currency.

Key Characteristics:

  • Linked to Accounts: Bits & Blocks ensures seamless integration of Account-Based CBDCs with existing banking infrastructures, allowing users to manage their digital balances just like traditional bank accounts.
  • Full Transparency: With Account-Based CBDCs, every transaction is recorded and traceable, offering complete transparency for regulators. Bits & Blocks develops transparent systems that enable efficient oversight while maintaining the security of personal financial data.
  • Highly Regulated: Bits & Blocks helps ensure that Account-Based CBDCs comply with stringent regulatory standards, including anti-money laundering (AML) and combating the financing of terrorism (CFT) guidelines.

Use Cases:

  • Government Payments: Bits & Blocks provides Account-Based CBDC platforms that allow governments to make direct payments to citizens for subsidies, welfare programs, and stimulus efforts. These systems allow for faster, more secure payments.
  • Retail Banking: Through Bits & Blocks’ solutions, individuals and businesses can hold CBDC accounts directly with the central bank or a licensed institution, enabling seamless day-to-day transactions.

Challenges:

  • Privacy Concerns: Account-Based CBDCs offer less anonymity compared to their token-based counterparts, as transactions are fully tracked. However, Bits & Blocks implements privacy features to mitigate concerns while maintaining regulatory compliance.
  • Centralization: With Account-Based CBDCs, reliance on the central bank can lead to concerns about potential centralization of financial power. Bits & Blocks helps mitigate these risks by providing scalable, decentralized solutions where needed.