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Cardano Founder Indicates "Gold Standard of Digital Age," and It Is Not ADA

Sat, 12/03/2022 - 15:44
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Vladislav Sopov
As Cardano (ADA) strengthens its position in stablecoin segment, Charles Hoskinson explains why algorithmic stablecoins matter
Cardano Founder Indicates "Gold Standard of Digital Age," and It Is Not ADA
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Charles Hoskinson, CEO and founder of Input Output Global (IOG), is excited by the concept of algorithmic stablecoins and is sure that it can undermine states' monopoly on fiat money.

Charles Hoskinson on algorithmic stablecoins: "Gold standard of digital age"

Hoskinson took to Twitter to share his views on algorithmically-backed stablecoins, i.e., cryptocurrencies that are pegged to fiat rates by smart contract-based technical designs.

Unlike traditional "centralized" stablecoins, the balance between the collateral volume and the stablecoin supply is not controlled by the issuer of the stablecoin. Instead, it depends on sophisticated on-chain instruments.

What Are Decentralized Stablecoins, and Why Might We Need Them?

It is the concept of an algorithmic stablecoin that can remove the control nation states have over the issuance and circulation of fiat currencies. The adoption of this concept looks inevitable to Hoskinson, as it is equal to a "gold standard" in the digital age.

To create healthy collateral backing, IOG CEO recommends using Bitcoin (BTC) and Cardano (ADA) as they are deflationary. BTC and ADA liquidity pools will protect stablecoins from losing value.

Cardano (ADA) onboards various stablecoin designs

As such, overcollateralized stablecoins backed by Bitcoin (BTC) and Cardano (ADA) can replace national fiat currencies, Hoskinson foresees.

While some of his followers appreciated the idea, skeptics recalled that the design of the collapsed TerraUSD (UST) stablecoin looked just the same.

Cardano's Stablecoin Djed to Go Live in January 2023

As covered by U.Today previously, Cardano's overcollateralized stablecoin Djed will go live on the mainnet in January 2023. It will be equipped with its own payment system Djed Pay.

Another Cardano team, EMURGO, has launched a centralized regulated stablecoin USDA in partnership with Anzens.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)