IOG CEO Charles Hoskinson said algorithmic stablecoins could undermine states’ monopoly on fiat money.
Hoskinson used the expressions “the gold standard of the digital age” regarding algorithmic stablecoins.
Charles Hoskinson Praises Algorithmic Stablecoins
Cardano founder Hoskinson explained his views on algorithmic stablecoins on his Twitter account.
According to him, unlike traditional centralized stablecoins, the balance between collateral volume and stablecoin supply is not controlled by the stablecoin issuer. Instead, it depends on complex on-chain tools.
The concept of algorithmic stablecoins is how we get nation states off of fiat currencies. It's the gold standard of the digital age. Use a deflationary cryptocurrency like bitcoin or ada to collateralize a stable coin that's use as a national currency.
— Charles Hoskinson (@IOHK_Charles) December 2, 2022
This is an algorithmic concept of stablecoins that can remove nation-states’ control over the issuance and circulation of fiat currencies. According to Hoskinson, since this is “a gold standard in the digital age”, its adoption seems inevitable.
Hoskinson recommended using BTC and ADA for collateral support due to their deflationary nature.
Hoskinson believes that over-collateralized stablecoins backed by ADA and BTC can replace fiat currencies.
Some followers of Hoskinson pointed out that TerraUSD has exactly the same structure.
