In early-stage digital payment markets, competing providers operate as isolated, closed loops. A consumer on Wallet Provider Alpha cannot send tokens directly to a user on Wallet Provider Beta, creating market fragmentation. Central banks fix this issue by implementing a centralized National Switch.
The Interconnected Switch Architecture
[Wallet Provider Alpha Node] <--- Local Token Send Instruction ---> [Central National Switch Hub]
                                                                              |
                                                                              v
[Wallet Provider Beta Device] <--- Settled Net Account Balances <-------------+

The national switch acts as a clearinghouse, allowing transactions to clear across competing mobile money networks, commercial banks, and credit cooperative platforms. This connectivity lowers fees, improves liquidity, and increases the utility of digital money for retail merchants.
 
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