Charles Hoskinson recently shared concerns about the crypto market and big banks. In his opinion, big financial institutions are willing to dominate the sector. Presently, these groups are developing their own blockchain networks to control funds of the users. This action may remove power to ordinary people and small investors.
Moreover, Hoskinson cautions that banks will attempt to prohibit personal wallets. They like custodial systems in which they possess keys to your money. This is contrary to the initial purpose of decentralized finance that was invented by Satoshi Nakamoto. This is leaving the industry with the threat of becoming no more different than the old banks.
Cryptocurrency Market Driving Financial Institutions.
Large banks are currently entering the crypto market with huge investment. They are lobbying towards the regulation supporting them at the expense of small users. To illustrate, a few new legislations could make the use of DeFi more difficult among the populace. This gives a sense of despair to a number of early crypto enthusiasts.
Nevertheless, the creator of Cardano thinks that there is hope to change something. He proposes that a new story and improved technology is required in the market. In particular, we should dwell upon such tools that make power remain in the hands of people. As such, the upcoming 6 months will be highly significant to the future.
- Big banks desire to transfer users to wallets of custody.
- New policies may curtail the utilization of decentralized applications by individuals.
- The institutional control may increase the surveillance of the transactions.
- The community should struggle to have an open system that is fair.
Cardano Unveils great LayerZero and Midnight News.
The partnerships that have emerged are to the benefit of the Cardano ecosystem even amid the pressure on the market. Recently, the team announced a mega deal with LayerZero to have a better connection. This will enable each blockchain to communicate with one another with ease. Additionally, a new stablecoin- USDCx will be introduced by the end of February.
Moreover, the Midnight network is being introduced to offer more privacy to the users. This partner network operates a unique technology that ensures the safety and privacy of transactions. Recently, it airdropped very high numbers of people with millions of individuals being eligible to participate. Consequently, Cardano is increasingly useful in the real-world finance.
- A MacGuffin is a plot device in a film that all pursue but is meaningless in actual sense. This is used by Hoskinson to explain magic events such as new laws or entry of big banks that people hope will fix the market but in many cases would not do this.
- The LayerZero is a protocol that assists various blockchains to share data and assets.
- Midnight is a new Cardano partner chain, which is privacy-oriented and data protection-oriented.
- USDCx is a recent update of the USDC stablecoin that is developed on the Cardano network with additional features.
Disclaimer: This content is for educational and entertainment purposes only. It does not constitute financial advice or investment recommendations. Always perform your own due diligence before investing in cryptocurrencies. Past performance does not guarantee future results. Cryptocurrency investments carry substantial risk of loss.
Crypto news writer since 2022, covering blockchain, digital assets, and market regulation.
Focused on clear, accurate reporting and simplified analysis for global readers.