Cardano founder Charles Hoskinson predicts crypto will dominate the global financial market in the future, erasing the boundaries of TradFi and DeFi altogether. Meanwhile, Pierce sees a future where unbanked societies can benefit from the crypto wave.
During the DNA House event in Paris on April 10, Hoskinson explained that the integration of the crypto space into global markets will make the financial system even more inclusive and decentralized. He believes it will reach a point where there will no longer be a distinction between traditional finance and decentralized finance. Instead, crypto will be normalized and seen as a part of the broader evolved financial system.
“So we’re going to have one global market in five to 10 years, which is self-sovereign, which means that you own your own identity, you’re in charge of the disclosure regime,” said Hoskinson
“It’s liquid, meaning it runs 24 hours a day, seven days a week, everywhere you look, everywhere you go. And assets can flow freely from one system to another system from your bank to a cryptocurrency, he continued.
Moreover, Charles Hoskinson believes that there will be a “tidal wave of capital” that will flow into the crypto space, specifically from major governments and institutions that used to be reluctant to embrace blockchain technology due to the regulatory risks involved.
“[There’s] this gigantic tidal wave of capital and it’s waiting to come into the cryptocurrency space and one of the biggest hurdles was the regulatory rules. But as those come down, the last hurdle is how do you merge the private with the public,” said Hoskinson.
To tackle this obstacle, the Cardano (ADA) founder and CEO of Input Output has created a technological solution called Midnight that combines a private smart contract system with a digital identity system. This way, users will be able to set digital boundaries to safeguard their data on the blockchain, while also making transactions traceable on-chain.
Charles Hoskinson criticized the way some stablecoin systems are run in a way that make transactions untraceable, despite the growing adoption of stablecoins worldwide through leading stablecoin issuer firms like Tether (USDT) and Circle (USDC).
“I have nothing against these companies. They’re good companies. They’re run by good people; but at the end of the day if you’re in a public ledger and transacting, it’s known forever by design. So you need a privacy preserving system so that you can do those stablecoins but still preserve the regulatory schemes,” said Hoskinson.
In addition, he also championed more blockchain-to-blockchain partnerships, encouraging them to work together in building the crypto space and making it more accessible for different holders.
“I’m just tired of the adversarial nature of this space. I’m tired of tokenomics trying to get people to hate each other. We’ve got to have people love each other. We’ve got to have people work with each other,” said Hoskinson.
Banking the unbanked societies
Co-founder of DNA Brock Pierce stated the Trump administration’s crypto-friendly approach sparked a global takeover.
In his discussion with Hoskinson, Pierce highlighted the massive developments the crypto space has seen in the past few months since President Donald Trump took office. He compared it to how crypto leaders used to be prosecuted by financial regulators during the Biden administration.
“Those days are over. We have permission. And I don’t mean we were permissionless systems, but that doesn’t mean our systems of governance or governments were giving us permission. We had to go to bed every night worried that we might have some investigation that starts tomorrow,” said Pierce.
He explained that the U.S. government’s change in attitude towards cryptocurrency has brought about a new era where other countries are following suit and embracing crypto adoption in their financial and government institutions.
“This brings us out of web2 and into an environment where the users are incentivized with something more than just access but some economic participation in the value of the platform. These are are huge things. There’s way beyond $7 trillion of potential growth here,” stated Pierce.
Pierce himself has been traveling to developing economies in regions across Asia and Africa to help governments adopt crypto into their financial systems. He believes crypto can empower these developing economies by lowering transaction fees for unbanked societies that mostly consist of low income citizens.
“The good news is with layer2s and the architecture of systems we’re getting around high gas fees and the big transaction fees. Meaning the products and services that people are building should be able to solve that problem, said Pierce.
