Charles Hoskinson, the CEO of Cardano Foundation, having an definite presence on social media, shares his views on fiat currencies. On 11th August, the Cardano founder has initiated the ‘Ask Me Anything’ segment on Twitter, taking up all the important issues based on cryptocurrency and blockchain technology.
Questions on Twitter
One of the important questions has focused on the need of public blockchain directed only towards, “a handful of reliable, robust cryptocurrencies before one of them will ever have a chance of replacing a fiat currency?” In this context, he has answered that as time progresses, fiat currencies may tend to lose its relevance and significance, as it has been experiencing for so long. However, nothing can completely replace the position of fiat currencies in the market space.
He exemplified his opinion by referring to cell phones which have not wiped out phone companies. In his opinion, the advent of cell phones have only modified the business model of the existing phone manufacturing organisations. According to his words, “we lost the payphone and a lot of landlines are going away, but you know there’s still a business model. …similarly, the innovation won’t kill the central bank.”
A competition would be existing for the first time between private and public money, as per his statement. He has explained that the public and private money both will be placed on the same ground. Hoskinson envisions a future where a universal wallet can store the holder’s airline miles, real estate, conduct coffee transactions through cryptocurrencies.
He has suggested that the universal wallets would function as the portfolio of the holder’s possessions. Hence, in the upcoming times, plane figures will no longer be utilised for wealth, however, a diversified portfolio will be used for the purpose. Furthermore, he clarified that the decentralised market makers will transform the entire process by making it completely decentralised.
He has stated, “you might even have a different way of measuring it that’s a bit more immune to inflation. Especially if you live in a country that tends to suffer from pretty bad inflation. So that’s where I think this is ultimately going to go is in that direction”
The creator of Cardano has finally drawn a conclusion stating that digital currencies do not aim to serve as a replacement to fiat currency in the market space. He also had to encounter questions based on the “fight” on Twitter between him and Vitalik Buterin, co-founder of Ethereum. He addressed this issue by commenting that so far Vitalik has not encountered any challenge because he has not passed out of college.
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