[MuffinFlavored]

> 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]

It'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