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IOHK’s Charles Hoskinson Slams Governments for Market Turmoil; Claims Crypto Can Provide Solutions

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The world markets have been hit hard over the last few weeks, with Coronavirus taking a toll on citizens and stocks crashing like no tomorrow. Several supporters have openly stated that if policymakers do not respond early, we would all have hit a devastating tipping point in history.

In a recent video, Charles Hoskinson, the CEO of IOHK Foundation spoke about how the cryptocurrency market could survive world pandemics and did not need a governing body that could make irrational decisions. 

Charles Hoskinson said there was a lot going on in the world right now, while at the same time, banking systems just couldn’t keep up with that demand. He acknowledged that the increasing credit system was the cause for the rising debt, referring to the $4.5 trillion gargantuan debt accrued by the United States. The country has been on the slippery slope with increased rate cuts which were even endorsed by the government.

 

The IOHK CEO opined that everyone was waiting for something to save them without thinking about the consequences of their actions. He said:

“Japan was looking at the Olympics to boost its economy but now look what happened. With the spread of the Coronavirus, the tourism industry has taken a drastic hit which will in turn affect the rate of returns. This was a result of nothing being done about earlier warnings as pandemics were considered a last priority. It’s pathetic that governments cannot agree on basic things like when and where to administer vaccines.”

According to Hoskinson, there were several examples as to why institutions would fail in the 21st century. He added that the cryptocurrency market did not depend on just the price of Bitcoin or a volume increase. The entire market was devoted to creating an ecosystem where users can transact and move capital easily without air gripped regulator, said Hoskinson. The Cardano proponent emphasized on that point by claiming the industry would not require any notary, CEOs or officiating regulators.

Charles Hoskinson passionately pointed to the lack of impact wars or disasters would have on the cryptocurrency industry. As a staunch supporter of new innovative technologies, he has always picked at the hypocrisy of regulatory bodies. In his words, it was much safer to build new technologies on the cryptocurrency industry as it was immune to governmental decisions or other forms of attacks.

At the moment, there were are over 3000 cryptocurrencies that had multiple use cases. Hoskinson said that over the next five years, the winner of the crypto race will definitely be an asset that would surpass the rest on all aspects. All the current systems can be improved upon and will prove decisive to the build-up of a better financial ecosystem.

Charles Hoskinson also spoke about real world applications like the Brave browser, which was one of the fastest-growing browsers on the planet right now. The control that people have with cryptocurrencies was something that Hoskinson lauded. The current price movement was seen as a correction for earlier market systems with many waiting for a bullish rise.

Revolut Becomes UK’s Most Valuable Fintech Startup, Officials Still Wary of CEO’s Kremlin Connections

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The cryptocurrency industry has gone through multiple phases since the massive bull run of 2017. Since then, the industry has been hit with speculations, price drops then a renewed interest shown by institutional investors.

Out of all the cryptocurrency companies out there, Revolut, based in the UK, has come out on top. The digital bank recently revealed that they had become the country’s most valuable financial technology startup.

Revolut received a massive boost in valuation after its latest funding round which elevated its value to 4.2 million pounds. The latest number is almost triple than that of its earlier valuation, prompting many to believe that the cryptocurrency industry was only thriving.

The latest funding round has allowed Revolut to usurp its rivals Monzo and OakNorth, both holding valuations of EUR 2 billion and EUR 2.2 billion respectively. The two rival companies were also trying to enter multiple markets across the world but regulatory frameworks have been an issue. Monzo and OakNorth can, however, take solace in the fact Revolut has also not turned a profit till now. If anything, Revolut’s losses had more than doubled in 2018 to settle at $33 million.

Revolut’s latest valuation boost was provided by the US Technology Crossover Ventures Fund, which pumped $500 million into the company. Investors have a tendency to invest in a growing business, as they also own shares in Spotify, Netflix, and Airbnb. The digital bank was also in the news recently when it launched a feature to allow users to aggregate other bank account data within its application.

The feature would allow customers within the United Kingdom to connect their individual UK bank accounts to Revolut. This was created to create a more wholesome banking environment where customers can see all their spending in one place. The update seems to have worked for the startup as the company is now worth three times more than its valuation in the spring of 2018.

Nik Storonsky, the Chief Executive Officer [CEO] of Revolut gave his two cents on the latest partnership:

“Going forward, our focus is on rolling out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability. TCV has a long history of backing founders who are changing their industries on a global scale, so we are excited to partner with them as we prepare for the next stage of our journey.”

Despite recent news, Revolut found it difficult to maintain a positive face in the industry. This comes as a result of multiple reports from overworked staff and the CEO’s connection to Russia. Although the official has denied any links with the Kremlin, lawmakers still remained wary. The first tip-off came in 2014 when investigators discovered that Storonsky’s father was a director at the much-maligned Gazprom.

Full Fledged Cryptocurrency Bank in Works as Caitlyn Long Emphasizes Digital Asset Importance

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As time progressed, more and more people entered the cryptocurrency industry, with institutions becoming the main target for digital asset companies. The influence of mainstream players has also brought the industry to the fore.

According to new reports, Caitlin Long who shot to fame for drafting Wyoming’s blockchain legislation has decided to launch the US’ own bank for digital assets. 

Long has begun to prepare to apply for the Special Purpose Depository Institution [ SDPI ] with Wyoming’s banking division. The digital asset bank, titled Avanti, will aim to provide regulated services for virtual assets in the state. Avanti will collaborate with Adam Back’s Blockstream to provide digital asset services to its users.

According to Long:

“I’ve founded Avanti with key support from top people in crypto and important innovators from traditional finance. Seed funding round recently closed. Avanti will serve institutional customers that need services around Bitcoin and cryptoassets. Thanks to the wise Wyoming legislature and Governor Gordon, Wyoming paved the way for such banks to exist via its special-purpose depository institution (SPDI) law.”

Avanti is expected to be launched sometime in 2021 with plans to improve the ecosystem already in operation. The cryptocurrency bank has already raised one million in seed funding with more prospective investors in waiting. Long claimed that the burgeoning cryptocurrency industry was too hard to ignore and it was high time that people tap into it.

Long believed that the United States banks and trust companies just did not have the resources to navigate the fintech world. She claimed that Avanti will enable the US to compete with other crypto-interested countries such as China and Japan. The Wyoming SPDI on their part has placed stringent requirements for the bank to pass before it can come to fruition.

The association with Blockstream will allow multiple features to be integrated into Avanti. These features include multisig signing-as-a service and upcoming native Blockstream features. Avanti’s policies list that it wants to be fundamentally different from mainstream banks by providing cutting edge technology to its account holders.

Proponents of the field have begun studying what Avanti can offer to the cryptocurrency populous on launch. The partnership with Blockstream will enable Avanti to build adjacent APIs and conventional banking APIs. Adam Back, the CEO of Blockstream also announced that they will push everything to make Avanti a one-stop-shop for cryptocurrency custody.

 

Elon Musk Is Positive About Bitcoin But Claims It Cannot Become ‘A Primary’

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Bitcoin, the world’s largest cryptocurrency also has the tag of being the most popular cryptocurrency. Many proponents of the digital asset field have pointed to multiple advantages of using the cryptocurrency, sometimes even being joined by mainstream personalities. 

Elon Musk, the CEO of SpaceX and Tesla has been a vocal commentator about the digital asset industry and mainly about Bitcoin.

In a recent podcast, Musk spoke about the effectiveness of the cryptocurrency industry and what role Bitcoin can play in it. According to the CEO, he was “neither here on there” about Bitcoin. His views about Bitcoin have been consistent since 2014 and has kept himself updated on the industry. Elon Musk spoke about how he thought the original Satoshi Nakamoto Bitcoin whitepaper was clever and praised some of its characteristics.

The SpaceX honcho admitted that there is value in Bitcoin being a tool for illegal transactions. He claimed that despite the positive side of Bitcoin, he was not a fan of “the digital gold” thesis. Musk added:

“This sort of gets the crypto people angry, but there are transactions that are not within the balance of the law. And there are, obviously, many laws in different countries. And, normally, cash is used for these transactions. But, in order for illegal transactions to occur, cash must also be used for legal transactions. You need an illegal to legal bridge. That’s where crypto comes in.“

Musk was asked about Bitcoin’s usage in the dark web and how it can affect the entire cryptocurrency industry as a whole. The Tesla official admitted that there were certain areas where cash cannot be used and that is where Bitcoin comes in. In his words:

“…there’s a forcing function for transactions that are illegal, quasi-legal, and in some cases legal. But it’s got to have both legal and illegal.”

The founder of PayPal also saw the need for a bridge to connect the decentralized network with the mainstream economy. This connection would bring in more credibility to the cryptocurrency market which in turn would make it a more conducive environment for institutions.

A majority of the cryptocurrency market has rallied behind Bitcoin to replace fiat money as the primary mode of payment. Elon Musk was against this idea because according to him, crypto cannot become the primary database for financial transactions. The interview concluded with Musk talking about the role of regulators in crypto. He urged regulators to look at the positive of the decentralized economy and then make informed decisions. This would help people to conduct transactions easily and in a much safer manner.