Cardano News Today – Cardano’s Charles Hoskinson Talks About What Cryptocurrencies Need to Rival Fiat Money – May 26th, 2020

  • Cryptocurrencies Need Key Services to Rival Traditional Money Systems according to Charles Hoskinson 
  • The Problem of Volatility Will Need to be Solved if These Cryptocurrencies are to Overtake Fiat 

Cardano News Today – Cryptocurrencies were created to serve as alternatives to cash. Over the years, however, despite all the progress that cryptocurrencies have made over the years, they are still a long way from competing with cash toe to toe. The creator of Cardano, Charles Hoskinson, recently talked about what cryptocurrencies need to do to compete with cash. According to him, small and medium-scale businesses are already suffering from the chain reaction of unrealistic monetary policies set by central banks around the world. With the global recession looming, Hoskinson said that cryptocurrencies will be presented with a unique opportunity to rival the traditional financial system.

Cardano News Today – Global Recession is Presenting the Perfect Opportunity for Cryptocurrencies

During an interview with FinancialFox, Hoskinson said cryptocurrencies were created specifically to solve crises like the current Covid-19 pandemic. Economies across the world have been forced to make drastic changes as they struggle to fight the virus. The poor and working-class members of society are feeling the heat of these changes most. The inevitable global economic depression is going to affect them more than any other group in society. He said that the consequences will be dire. In his words;

“If you shut down all your supply chains, your restaurants, your entertainment industry, and you start saying elective procedures are no longer allowed to be performed at hospitals then what ends up happening is you’re furloughing a very sizable chunk of your economy. Then they can’t pay their rent. Then the landlords are in trouble. You have a credit crisis that occurs, and of course, consumer consumption starts crunching up everywhere. People stop buying cars.”

Cardano (ADA) Price Today – ADA / USD

NamePrice
cardano
Cardano
$0.099

Regarding the role cryptocurrencies can play, he said that there is a strong chance that they will displace fiat. However, for this to happen, cryptocurrencies will need to create credit and leverage all the principles of modern financial services that allow people to borrow money. Before this can happen, the problem of volatility will have to be solved. In his words;

“Debt-credit is a very difficult thing to practice, to institutionalize. It requires stable money because [the lender] needs to be paid back in something with a predictable value over time. So unless cryptocurrencies can enable an alternative credit system to the current banking system, they never will displace it. But we are making enough monetary innovation where there’s a very good reality where I think within 5 to 10 years we’ll have a legitimate stablecoin and be able to get good stability in our ecosystem.”

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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