Cardano Founder : Big Banks Threaten Decentralization Dream

Cardano founder Charles Hoskinson raises concerns about traditional financial institutions entering the crypto space and potentially undermining its core principle of decentralization.

During a recent live video, Hoskinson expressed his worries about the growing dominance of centralized stablecoins like USDC and USDT, which currently account for 70% of on-chain transaction volume. He argues that these coins, backed by centralized entities, contradict the decentralized vision of the crypto world.

Algorithm-based stablecoins like Cardano’s own Djed. These coins operate independently of centralized control, aligning with the ideals of decentralization. However, concerns exist about their stability, with critics like Nano’s Colin LeMahieu pointing to the downfall of algorithmic stablecoin TerraUSD in 2022.

Cardano’s Djed, launched in January 2023, remains relatively unknown due to its limited interaction with other networks compared to mainstream options like USDC. This highlights the challenge of non-bank-backed, isolated coins gaining traction.

The debate continues: Can the dream of true decentralization coexist with the involvement of established financial institutions? This crucial question demands careful consideration by the crypto community.

Read Also: CitiBank Tests Private Equity Tokenization on Avalanche

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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