In a recent tweet, Charles Hoskinson, the creator of Cardano, playfully jabbed at detractors of the cryptocurrency sector. He highlighted how prominent crypto companies such as Circle, Paxos, and Tether have managed to withstand circumstances that have led to the collapse of traditional banks, drawing a comparison between the two.
Hoskinson emphasized that companies such as Circle, Paxos, and Tether primarily maintain collateral in cash and Treasury bills, yet the government views cryptocurrencies as extremely risky. On the other hand, banks hold collateral mainly in longer-term conventional finance bonds. Despite this, the government still blames the cryptocurrency sector when banks falter.
Individuals within the cryptocurrency community have shared their opinions regarding Hoskinson’s recent tweet, with many agreeing with his statements. One community member pointed out that the Federal Reserve Board has eliminated reserve requirements for all depository institutions, leading to speculation that the government may need to be more forthcoming about how they handle the financial system.
Some individuals have expressed concern about the risks associated with cryptocurrency, as centralized stablecoins still rely on traditional finance and fractional reserve banks. However, decentralized finance projects such as Cardano and $Djed could address this issue. One member commented lightheartedly on how Hoskinson and Cardano’s involvement in the space can help keep investors alert and secure their investments.
The crypto community thinks traditional finance is unreliable and decentralized finance is the future. According to a member, the increasing ability of investors to hold traditional finance institutions responsible for their actions must continue.
Hoskinson’s tweet reminded me that the bitcoin industry is booming and that traditional financial institutions must adapt to the changes. Cardano and $Djed are building a reliable and transparent financial system. Their decentralized finance initiatives aim to withstand market pressure and government regulations.
Algorithmic Stablecoins Gain Support From Cardano Creator
Cardano’s founder Hoskinson recently shared his thoughts on the long-term significance of algorithmic stablecoins in realizing Bitcoin’s full potential.
Hoskinson replied to a tweet by Jesse Powell, Kraken’s CEO, about USDC and USDT. Powell stated that USDC had dropped to 0.89 USD, while USDT had “depegged” and was worth 1.06 USD. Hoskinson’s response was about this.
In response to Powell’s tweet, Hoskinson reaffirmed his unwavering conviction that algorithmic stablecoins are the crucial area of research needed to accomplish the original goals of Bitcoin.
They indicate his view that conventional financial institutions need to be more trustworthy in the long run. Banks will always let you down if they have fractional reserves.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing