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A New York Fed blog by Rod Garratt, Michael Lee, Brendan Malone, and Antoine Martin explores common distinctions made between “token-based” and “account-based” digital currencies and whether the terminology is flawed given that many other digital currencies satisfy both definitions.
“If a digital currency can be both token-based and account-based, then the classification loses its power to meaningfully distinguish between new and existing methods of digital payment” and “may slow down progress in understanding intrinsic differences,” the authors write.