Charles Hoskinson, the founder of Cardano, has taken a dig at critics of the cryptocurrency industry in a recent tweet. In his tweet, Hoskinson compared the operations of major cryptocurrency firms like Circle, Paxos, and Tether to those of banks, emphasizing that these firms have been able to endure under conditions that have caused banks to fail.
Hoskinson pointed out that firms like Circle, Paxos, and Tether hold collateral mostly in cash and T-bills, yet the government deems cryptocurrency as super risky. In contrast, banks hold collateral mostly in longer-dated traditional finance bonds, and when they fail, the government still blames cryptocurrency.
Members of the cryptocurrency community weighed in on Hoskinson’s tweet, with some expressing their support for his sentiments. One member highlighted that the Federal Reserve Board eliminated reserve requirements for all depository institutions, which suggests that the government is not completely transparent about handling the financial system.
Others pointed out that while crypto is risky because centralized stablecoins still depend on traditional finance and fractional reserve banks, Cardano and other decentralized finance projects like $Djed can fix this issue. Another member joked that it is a good thing that Hoskinson and Cardano are keeping investors on their toes and keeping their investments safe.
The sentiment among the cryptocurrency community is that traditional finance is not as reliable as it once was, and decentralized finance is the future. As one member put it, they cannot stop the slowly evolving ability of investors to hold traditional finance institutions accountable for their games.
However, Hoskinson’s tweet is a reminder that the cryptocurrency industry is here to stay and that traditional financial institutions need to adapt to the changing times. Decentralized finance projects like Cardano and $Djed are paving the way for a more transparent and reliable financial system that can withstand market pressures and government regulations.
Cardano Founder Supports Algorithmic Stablecoins
Charles Hoskinson, the founder of Cardano, recently expressed his belief in the long-term importance of algorithmic stablecoins in fully realizing the original vision of Bitcoin.
Hoskinson’s comments came in response to a recent tweet by Jesse Powell, the co-founder, and CEO of Kraken, who noted that the USDT stablecoin had “depegged” to the upside, currently worth 1.06 USD, while USDC had dipped to 0.89 USD.
Hoskinson responded to Powell’s tweet, stating that he still firmly believes that algorithmic stablecoins are the essential research stream to fully realize the original vision of Bitcoin.
He further commented that banks will always let you down as long as they are fractional reserves, indicating his belief that traditional financial institutions may not be reliable in the long term.
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