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> To compare that to normal banking, your credit card is like an L5. Could you tell us what L1, L2, L3, L4 are in a credit card example?
by MuffinFlavored 4y ago
> To compare that to normal banking, your credit card is like an L5.
Could you tell us what L1, L2, L3, L4 are in a credit card example?
- olalonde 4y agoIt's an imperfect analogy but it might look something like this: L1: Central bank (implements monetary policy) L2: Member banks (have accounts at the central bank) L3: Non-member banks L4: Clearing house, SWIFT, etc. for interbank payments L5: Credit card networks