Cardano Founder Charles Hoskinson shared his damning thoughts on the legacy financial system, concluding that cryptocurrency will take over because it offers a better way.
The Banking System Brought This On Itself
Much is said about the enmity between cryptocurrency and banking. While the banking system towers above cryptocurrency in terms of both capitalization and the number of users, Hoskinson believes this is a situation that will change.
“You can’t go back; you can’t change that. You can’t put that genie back in the bottle. Central banks will fade away, it’s just going to happen. Your conventional legacy banks are going to fade away.”
His reason for thinking this comes down to the nepotism and profiteering embedded within the banking system. All of which conspire to squeeze the “little guy,” often in circumstances of desperation and lack of choice.
“It wasn’t us who charged 15% to some of the poorest people in the world to move their money home to take care of their parents. It was the people who ran the old system. It wasn’t us, in this industry, who charge 85% interest to lend $100 to a subsistence farmer, desperately trying to survive after a drought.”
Hoskinson further laid scorn on the banking system’s complicity with criminal activity. Referencing general instances of laundering drug money and oil for food programs, Hoskinson turned the tables by saying cryptocurrency is the remedy to fix this.
“Never allow them to say ours is the industry that’s the risk. Ours is the industry that’s the antidote to the excesses, corruption, and nepotism that we’ve found. This is an industry of frustration that has now been replaced by an industry of creativity and innovation. We’re going to change the world.”
Cardano Gears Up For Smart Contracts
In terms of leading the charge against the banking system, Cardano is up there as a project capable of rising to the challenge. But, like the whole of the cryptocurrency industry, it is a work in progress.
Nonetheless, last week saw developers Input-Output Global (IOG) reveal its progress on shipping the final phase of Cardano’s smart contract rollout.
Currently, the firm is working on the “Alonzo Blue” stage which involves Plutus pioneers and some “alpha partners” working on the first-ever Alonzo testnet.
The “alpha partners” have been drafted to build a range of dapps including oracles, DEXs, lending and borrowing, stablecoins, NFTs, and DeFi tools.
During this stage, the goal is to uncover and fix bugs to stabilize the code environment. The remaining “Alonzo White and Purple” stages will see the testnet open up a wider group of testers. At the “Alonzo Purple” stage, the protocol is almost ready for public rollout, which is expected in August.
As Hoskinson alluded to, change is coming, and thanks to smart contracts, Cardano will be one of the cryptocurrency projects eating away at the legacy system.