Cardano’s Hoskinson says the US regulators are not prepared to handle crypto in a recent interview as we can see more today in our latest Cardano news.
Charles Hoskinson explained that the American regulators are struggling to deal with crypto and spoke to the attendees at the Financial Times Crypto and Digital Assets Summit. During his talk, he singled out the US Regulatory system as being poorly equipped to handle the nature of crypto, and these agencies that regulate the financial markets in the US are not prepared for crypto assets either.
As a part of the difficulty for the agencies in crypto’s ability to change how they can be used and how they can be categorized. Cardano’s Hoskinson said that the US they do regulation by category which is why these regulatory bodies are built around the categories that specialize in these areas. Offering BTC as an example, he explained that it can be seen as a currency like legal tender like in El Salvador or it can be seen as a commodity such as gold. This makes it hard for authorities to categorize the asset and regulate it. He was asked to persuade the audience to consider the benefits of the decentralized world.
The Cardano founder took the chance to hit out at the discrepancies in the ESG standards set by the rival and centralized powers in the world:
“If you look at the example of ESG scoring, which every corporation is talking about, how do we be more environmentally friendly, how do we be sustainable, how do we have good governance?”
Hoskinson argued that there will be a different standard on who will decide the definition of the ESG in the different jurisdictions and offered the blockchain technology as a solution. Using the technology, one can deploy smart contracts as the way ahead to build the stands. In his opinion, this will stand a chance of solving glboal warming and climate change than the system in place right now. Hoskinson explained that the technology underpinning the crypto will provide immutable trust in business processes and install standards among the people that don’t trust each other or get along.
The first application of it occurred in 2009 with decentralized monetary exchange and the advent of BTC. Satoshi Nakamoto’s creation allowed for value exchange which people can transact peer to peer but no power groups can manipulate. The smart contracts ont the likes of ETH of which Hoskinson was a co-founder and took the idea further and allowed for the decentralzied system and are not influenced by the politics of the day or the geopolitics of bigger nations over smaller nations. He noted that with the blockchain protocols, the system is the code and the code doesn’t really care who you are or where you are at.