According to Cardano founder Charles Hoskinson, algorithmic stablecoins are more suitable for the crypto industry. Hoskinson made the statement during an interview with the Discover Crypto crew while responding to questions about some stakeholders in the crypto ecosystem refusing to associate with the project.
Hoskinson noted that Cardano’s uprightness may be why some projects and practitioners resent it. According to him, Cardano is scary because they did everything right, including growing without taking funds from Venture Capitalists (VCs).
Speaking about not having USDC on the Cardano network, Hoskinson said he does approve of asset-backed stablecoins. According to him, they are a category of digital assets that should not be classified as cryptocurrencies. He explained that despite stablecoins reflecting 80-90% of the money velocity and transactions on-chain, stablecoins remain under the control of centralized entities.
According to the Cardano founder, centralized exchanges already control a significant amount of the asset-backed stablecoins. He highlighted the recently approved spot Bitcoin ETFs in the United States as a development to further centralize the crypto industry. Hoskinson noted that those few companies behind the approved ETFs have technically taken over control of the crypto industry.
The renowned blockchain expert considered the recent developments in the crypto space a total deviation from the original vision of early cryptocurrency practitioners. According to him, contrary to initial expectations, the banks and legacy financial systems have taken over control of the crypto industry.
Although Hoskinson thinks it is “nice” that Cardano has not looked into asset-backed stablecoins, he considers it a phenomenon that has come to stay. However, he noted that his team has researched algorithmic stablecoins and considers them more suitable for the crypto industry.
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