The post Cardano Founder Charles Hoskinson Alerts Crypto Community to Legacy Finance’s Growing Threat appeared on BitcoinEthereumNews.com.

In a compelling video, Charles Hoskinson highlights the increasing encroachment of traditional financial mechanisms into the cryptocurrency space. Hoskinson warns of the potential centralization and control by legacy financial systems, undermining the decentralized ethos of cryptocurrencies. “You should be able to participate in markets without fear of censorship and exclusion. This is the bedrock of the revolution that is cryptocurrencies.” – Charles Hoskinson Cardano Co-Founder, Charles Hoskinson, voices concerns over traditional finance’s influence in crypto, warning of a shift towards centralization that could undermine the sector’s foundational principles. Warning of Crypto’s Creeping Centralization In a recent address, Charles Hoskinson, the influential co-founder of Ethereum and Cardano, has raised alarms about the advancing influence of traditional financial systems within the cryptocurrency world. Through his video “Legacy is Eating Crypto,” Hoskinson outlines how the essence and decentralized nature of digital currencies are under threat. The increasing dominance of asset-backed stablecoins such as USDT and USDC, which are heavily regulated and controlled by specific jurisdictions, is central to his concerns. Hoskinson emphasizes that these stablecoins, despite making up only about 10% of the crypto market cap by value, command approximately 70% of all on-chain transaction volume. This, he argues, centralizes control within the crypto space, potentially dictating the direction of decentralized finance (DeFi) economies. Stablecoins and the Threat of Regulation Hoskinson suggests that the solution to counteract this growing influence might lie in algorithmic stablecoins, which operate independently of any central authority and are governed by on-chain algorithms. Such stablecoins, according to Hoskinson, are more in line with the decentralized philosophy that cryptocurrency embodies. However, the rise of spot Bitcoin exchange-traded funds (ETFs) and the potential for increased Wall Street influence over the crypto market represent additional avenues through which traditional finance could exert control over the industry. He presents a scenario where…

---

Filed under: News - @ February 21, 2024 3:20 pm