Charles Hoskinson: "Algorithmic stablecoins are the gold standard of the digital age"

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Cardano founder Charles Hoskinsonbelieves that algorithmic stablecoins are the right way to develop the cryptocurrency industry, as they can break the monopoly of state currencies.

In a recent tweet, Charles HoskinsonHoskinson) expressed support for algorithmic stablecoins. These are a new form of stablecoins that are backed by another cryptocurrency. Hoskinson believes they are more attractive because they are not issued by a centralized organization and are not tied to fiat currencies, unlike regular stablecoins. 

According to the head of Cardano, it is advisableuse deflationary cryptocurrencies such as Bitcoin or ADA to back stablecoins, as they have sufficient liquidity pools.

“The concept of algorithmic stablecoins is to rid governments of fiat currencies. This is the gold standard of the digital age,” Hoskinson tweeted.

However, Hoskinson's statement causedmixed reactions from its subscribers, concerned about possible glitches in algorithmic stablecoins. Many users cited the example of the collapse of TerraUSD, when investor losses amounted to more than $40 billion. Others believe that linking stablecoins to real assets makes much more sense than to the volatile cryptocurrencies BTC or ADA.

In November, Hoskinson expressed disappointment thatventure investors are ready to invest in risky projects Terra and FTX, and not in projects based on the Cardano blockchain. Recently, Hoskinson also criticized the Ethereum network due to the strong censorship of transactions using the MEV protocols.