As an informed investor it’s vital that you understand the critical differences between CBDCs (Central Bank Digital Currencies) and the META 1 Coin. Both of these projects promise to improve efficiency and provide new opportunities to the market. However, CBDCs seek to provide these opportunities mostly to the banks. Whereas, META 1 eliminates the centralized banks from the market altogether and shares the profits with users.
What are CBDCs
CBDCs are the commodification of the cryptocurrency concept. They leverage the benefits of blockchain technology such as added efficiency, improved monitoring, and security. These unique digital assets are different than regular cryptocurrencies in that they are centrally issued and controlled.
These government-backed digital currencies provide bankers with a host of new powers and monitoring capabilities. They can issue currency in a more responsive manner and monitor changes brought on by policy alterations in real-time. Central banks are all for the CBDC concept because it gives them more control and improves their returns. In the end, regular users end up trading their freedom for more convenience using these coins.
META 1 builds on cryptocurrencies’ original purpose, to provide humanity with a better alternative to the corrupt centralized financial system. The project took inspiration from Bitcoin’s creator, Satoshi Nakamoto, and other freedom fighters throughout history. As such, the network provides completely open access to wealth generation and preservation tools.
META1 is a next-generation stablecoin that lives on the fourth-generation META blockchain. The stablecoin is unique because it derives value from a basket of gold-related assets rather than fiat currency. This technical structure provides the token with some impressive characteristics. For example, META 1 is the first self appreciating stablecoin pegged to gold to enter service.
Smart Contract Controlled Ecosystem
The developers took the concept even further through the introduction of some custom smart contracts. META 1 has two smart contracts that make it a cut above its predecessors. The smart contract 6 requires all users to confirm they are human and not a government, corporation, or trading firm. The goal of this protocol is to eliminate whale manipulation and better protect the token’s value from volatility.
Along the same lines of thought is the network’s value locking mechanisms. This system employs off-chain sensors called oracles. These sensors constantly monitor the value of the token and cross-references it against any trades. The protocol was built to ensure that META1 coins sell for no less than token value.
Together these systems create a digital asset that increases in value over time. These characteristics make META 1 coin an excellent store of value. They also protect META 1 coin holders from pump and dump schemes. A pump and dump occurs when a large trader or group of traders coordinates a large sell-off of assets. These actions drop a project’s token value quickly and leave those not in on the plan taking the losses.
CBDCs vs META 1 Structure
One of the main differences between CBDCs vs META 1 is their structures. CBDCs are centralized blockchains. The bank has the power to alter the blockchain however it deems necessary. It can reverse your transactions, block your actions, or confiscate your holdings without warning.
META 1 operates as a truly decentralized network. There are no gatekeepers or centralized groups operating the protocol. Instead, the network relies on smart contracts to conduct operations in a transparent and decentralized manner. Network participants called nodes handle transaction approvals and smart contract executions. In return for their efforts, they receive rewards in the form of META 1 coins.
CBDCs vs META 1 Privacy
CBDCs provide no privacy to users. The reality of a CBDC ran economy is scary to most as these assets provide central bankers with a new level of control. The use of blockchain consensus enables banks to monitor the entire population in near real-time. Like the current system, you will need to prove your identity and provide other data to access the most basic financial services.
Sadly, these requirements will not address the 1.7 billion unbanked members of society. These individuals are left in the dust with CBDCs because they require the same unrealistic expectations from users as the fiat-based system. Refugees, those lacking proper documentation, and those with negative financial histories may find they are shut out from the market when CBDCs go into effect.
META 1 provides users with privacy as part of its core protocols. The network was built with freedom in mind. As such, you are never required to give over personal data to participate in the METANOMICs DeFi (decentralized finance) economy. In this way, META 1 enables regular users from around the globe to finally gain fair entry into the economy.
CBDCs vs META 1 Security
CBDCs pose another major issue to the market. Primarily that they are less secure than decentralized systems because they have one point of failure. A hacker would simply need to gain access to the network’s centralized ledger to make alterations to the entire system.
The META 1 network relies on the decentralized META blockchain to maintain security. This community-run system leverages an advanced Proof-of-Stake consensus mechanism to ensure that the blockchain remains valid. PoS networks are more efficient than early Proof-of-Work networks like blockchain. Additionally, they require far less electricity to operate which makes them a greener solution.
Another vital aspect to consider when comparing these assets is their earning potential. CBDCs will provide users with access to all of the normal opportunities found in the fiat market. Remember, CBDCs are meant to complement the fiat infrastructure, not replace it.
The METANOMICs DeFi ecosystem provides users with a variety of ways to generate wealth safely. The network offers a high yield savings account that pays out 10% APY. In comparison, your local bank pays you 0.03% of your savings. This rate doesn’t even keep up with inflation. In the end, centralized bank users lose out.
CBDCs vs META 1 Coin – No Comparison
After reviewing the facts it’s easy to see that the only people who are to benefit from the introduction of CBDCs are banks. They will obtain full control over the market. In exchange, regular users will enjoy more efficiency and security but no privacy and increased censorship. META 1 provides a better option in that it gives users all the efficiency and security while not sacrificing their privacy or control. For these reasons, the META1 Coin beats out CBDCs every time.