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