Rev Cynthia Pustelak Safeth Ministries
Coinmonks
Published in
4 min readMay 20, 2023

Avoiding CBDC with Retail Tokens/Coins by Safeth on Hedera

To understand how Retail Token/Coins in a Layer 2 (SR- Safeth Retail) DApp can potentially avoid central bank digital currency (CBDC) clawbacks, it’s important to consider the following points:

1. Independence from CBDC: Retail Token/Coins in a Layer 2 DApp operate independently of CBDCs. CBDCs are digital currencies issued and controlled by central banks, whereas Retail Token/Coins are specific to the DApp ecosystem and function according to their own rules and protocols. As such, they may not be subject to the same regulations and potential clawback mechanisms associated with CBDCs. Just like at an arcade they're only useful within the arcades businesses.

2. Decentralized Governance: Layer 2 DApps often operate with decentralized governance models. The rules, protocols, and decision-making processes are determined by consensus among the participants in the ecosystem, rather than being controlled by a central authority like a central bank. This decentralized nature may provide additional safeguards against potential CBDC clawbacks, as the governance structure and token ownership rights can differ from those associated with CBDCs.

3. Limited Integration with CBDCs: Retail Token/Coins in a Layer 2 DApp may have limited or no direct integration with CBDCs. Since they are primarily focused on providing utility within the DApp…

--

--

Rev Cynthia Pustelak Safeth Ministries
Coinmonks

Reverend at Safeth Ministries, Co-Founder and Co-Creator of Safeth technologies.