====== Intermediated Model ======
[[cbdc:public:cbdc_omg:8_append:20_glossary:start| Return to Glossary ]]

Under an **Intermediated Model**, the private sector
would offer accounts or digital wallets to facilitate the management of CBDC holdings and payments. Potential intermediaries could include commercial banks and regulated [[cbdc:public:cbdc_omg:8_append:20_glossary:nonbank_money| Nonbank]] financial
service providers, and would operate in an open market for [[cbdc:public:cbdc_omg:8_append:20_glossary:cbdc]] services. Although commercial
banks and **nonbanks** would offer services to individuals to manage their CBDC holdings and pay
ments, the CBDC itself would be a liability of the Federal Reserve. 

An **Intermediated Model** would
facilitate the use of the private sector’s existing privacy and identity-management frameworks;
leverage the private sector’s ability to innovate; and reduce the prospects for destabilizing 
disruptions to the well-functioning U.S. financial system.

Source: [[https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf ]]

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