Charles Hoskinson Calls Cryptocurrencies the ‘Antidote’ to Corrupt Central Banks

The head of IOHK, the Cardano developer, Charles Hoskinson, described central banks as inefficient and corrupt. He argues that cryptocurrencies will ultimately replace them.

‘You can\’t change this, you can\’t put the genie back in the bottle. Central banks will disappear. It will simply happen. Your traditional, outdated banks will disappear along with the payments infrastructure, nepotistic, corrupt and slow’, said Hoskinson.

According to the Cardano founder, the modern financial system is imperfect. He noted that farmers in developing countries have difficulty obtaining loans from banks, and cross-border payments are too expensive.

Hoskinson regards cryptocurrencies as the ‘antidote’ to ‘this broken financial system’. He dubbed traditional finance the ‘industry of disappointment’.

He stressed that population growth has made markets large and less manageable, while innovations are too complex to implement. In his view, only cryptocurrencies can address these problems.

Cathie Wood, founder of ARK Invest, while not expecting the disappearance of central banks, believes that under certain scenarios they could invest in cryptocurrencies.

In the podcast The Breakdown Nathaniel Whittemore stated that deflation in commodity markets in developing countries would hurt their national currencies. This would force monetary regulators to accumulate Bitcoin and other digital assets.

‘I think developing-market currencies, if commodity prices fall, will come under pressure. […] If they [central banks] know their currency is falling and reserves are shrinking, perhaps they hold Bitcoin and other cryptocurrencies on their balance sheets’, added Cathie Wood, head of ARK Invest.

Wood argues that it is deflation, not inflation, that threatens global markets. Her firm believes consumer demand will shift from goods to services.

In April 2021, Hoskinson expressed doubts about the prospects of Proof-of-Work and called the algorithm ‘expensive to nowhere’.

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