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+Architecture
+============
+
+There are several key components needed to operate a regional currency based
+on GNU Taler and LibEuFin technology:
+
+- LibEuFin Nexus: is responsible to drive the master (fiat) bank account both to learn
+  about incoming payments and to send fiat cash-out payments
+- LibEuFin Bank: offers basic banking operations, e.g. wire transfers, Taler withdrawals,
+  account management, cash-out's
+- Taler exchange: server side of Taler operations.
+- Taler wallet: client side of Taler operations.
+- Taler merchant backend: abstracts Taler details to the shops.
+
+.. image:: ../images/regional-currency-architecture-diagram.png
+
+In this model, the regional currency is backed by the fiat currency and users
+are offered two operations: *cash-in* to create regional currency starting
+from fiat money, and *cash-out* to convert regional currency into fiat
+currency.
+
+The design assumes that one single unit of regional currency is always backed
+by one single unit of fiat currency.
+
+
+Cash-in
++++++++
+
+One fundamental entity to create the regional currency is the *master bank account*.
+The master bank account is hosted at one fiat bank and whenever it receives a *valid*
+fiat payment of N units, it triggers the creation of N units of regional currency.
+Such trigger causes the *admin bank account* at the regional bank to wire the N units of
+regional currency to the Taler exchange (regional) bank account.  At this point, the
+Taler exchange is ready to issue the regional coins to the Taler wallet that proves
+to own them.
+
+.. note::
+
+   *Valid* fiat payments are those with a Taler-relevant subject that should be generated by a Taler wallet.
+
+
+Cash-out
+++++++++
+
+Once a regional bank user confirms a cash-out operation of N units, the system sends
+a regional payment of N units to the *admin bank account*.  This latter triggers then
+a fiat payment of N units to the fiat bank account owned by the user who initiated the
+cash-out.