Cardano ($ADA) Founder on the importance of crypto-friendly regulatory frameworks
On Thursday (October 13), Charles Hoskinson, co-founder and CEO of Input Output Global (aka “IOG”), the blockchain technology firm behind Cardano’s R&D, explained the importance of having regulation that appreciates the benefits offered by cryptocurrencies.
According to a report by The Daily Hodl, the IOG chief said:
“It is necessary for us to get [to] next level. As many of you know, we want Cardano and cryptocurrencies in general to become the world’s financial operating systems. And my great passion in life has always been banking the unbanked and providing the unbanked financial identity that they control, which is self-sovereign and ultimately global in nature, and to ensure human rights, freedom of association, freedom of trade and freedom of expression.
“To achieve this, there needs to be a regulatory regime that recognizes the existence of cryptocurrencies, sees them as positive things and values the freedom they bring to people.“
On October 11, Hoskinson explained in an interview why he is very bullish on crypto in the long term.
His comments were made during an interview with Maria Bartiromo, the anchor of “Mornings with Maria”, on the American cable TV channel Fox Business Network (FBN).
When Bartiromo asked Hoskinson about his current assessment of the crypto market and how he expected crypto regulation in the US to change, the IOG chief replied:
“It’s a tough market. The stock markets are down nine trillion dollars and the crypto markets don’t seem to be immune to that, but you know, I’ve been through seven boom and bust cycles in the last eight years. So we’ve gotten quite used to it. We have become accustomed to volatility, but the fundamentals are still very strong.
“All infrastructure is being built on. There are many great exchanges doing amazing things. Many good protocols that do things. So, like all things, it’s business as usual, and most of the big players are still building and still doing interesting things. So I’m generally very optimistic in the long term, but it’s going to be a rough short term.“
So, when asked if Coinbase received regulatory approval to operate in Singapore, Hoskinson said:
“Well the US has been very difficult and as a result a lot of crypto companies are going global and that ultimately means they are moving jobs and opportunities outside of the US and so unless and until that environment improves, we’re going to continue to see this trend where American companies are diversifying, whether it’s Ripple or Coinbase, and it’s just something we’ve had to deal with. But overall, it shows you that the people at Coinbase and others in the industry are quite positive and optimistic about global growth.“
Mitch Roschelle, who is the founder of Macro Trends Advisors LLC and who appears regularly as a guest on Fox Business, asked Hoskinson how crypto assets would be affected by the slowdown in the global economy.
The IOG chief replied:
“I used to think that crypto would be counter-cyclical and the place people would put assets when they were afraid of the global economy, but so far it seems to be moving in parallel with tech stocks and some of the more standard stock markets. So that’s kind of a problem. But all things considered, I think that in the long term, the crypto markets are going to disconnect from the traditional marketplaces and have their own economy… and you know, that’s probably going to happen in the next 24-36 months.“
Bartiromo then wanted to know how major blockchain upgrades — like those Ethereum and Cardano have had recently — improve the ecosystem.
Hoskinson told her:
“Well, it’s just like many of the things we do. We are a slow and methodical project… Everything we do… is about making things better, faster and cheaper, and ultimately improving the use and usefulness of the platform. So, Vasil was about 12 months of work and we got it out last month and it’s really exciting to see that it’s caused a lot of great positive upgrades in our community.
“But more generally, when we look at the cryptocurrency space, this is the case. Most are building and although the macro environment is not so positive, the individual environment of each cryptocurrency, whether it is Ethereum with the merger or Cardano with Vasil, is looking better and better every day and we are getting more and more opportunities… great growth and everything from GameFi to metaverse to NFTs to DeFi. So I’m very bullish on the long term.“
