A stablecoin on Cardano? “It will blow everyone out of the water”

Charles Hoskinson, leader of Cardano, has recently declared that the blockchain will soon host a new stablecoin.

“I started in this space with stablecoins, will blow everyone out of the water”.

If we do this, then it will blow everyone out of the water. I started in this space with stablecoins and we've been thinking about them for seven years https://t.co/t4FGxW7cLk

— Charles Hoskinson (@IOHK_Charles) February 11, 2020

This was his comment linked to the tweet of Weiss Crypto Rating, a service from Weiss Ratings, a company that has been rating and analyzing markets since 1971. 

We hear that @IOHK_Charles wants to build a version of DAI on Cardano. So far, #DAI is the only trustless #stablecoin in #crypto world, but there should be more. Stablecoins like DAI have no central point of failure, which is a BIG advantage over the likes of #USDT or #USDC.

— Weiss Crypto (@WeissCrypto) February 11, 2020

Weiss is a newcomer to the cryptocurrency industry. Based in Florida, it monitors the sector by analyzing the most interesting projects and following the developments of the ecosystem.

And that’s how they came into contact with some rumours about a new decentralized stablecoin being developed on Cardano.

The DAI stablecoin and the future of Cardano 

The DAI stablecoin has revolutionized the industry since it saw the light, enthusiasm for Ethereum has never stopped.

Thanks to this smart contract and the work of Maker Dao, new models and experimentations of what is presenting itself as the finance of the new millennium are growing day by day.

In contrast to tokens such as USDT, TUSD or USDC, DAI aims to be a decentralized form of digital currency with a stable price in relation to fiat currencies.

While USDT are issued by a central entity, DAI is the result of a Decentralized Autonomous Organization (DAO) that regulates its operation in a transparent manner following the guidelines of the code written in the Ethereum smart contract.

Some details make these tools still experimental and not completely free of critical issues. What matters is the wave of innovation they are allowing: lending systems, derivatives creation and innovative financial instruments are blossoming.

The buzzword is disintermediation. 

Protected from the dangers posed by central bodies, decentralized digital currencies now resemble a traditional dollar or euro in every way, but they can be programmed at will.

Charles Hoskinson and his creation, Cardano, can only adapt and follow a trend that is now unstoppable. For this reason, they require a stablecoin like DAI and it seems to be in the planning phase.

Charles’ experience in Ethereum is well known, his collaboration at the beginning was important. He was CEO of the Ethereum Foundation for a short period and left at some point. 

Some say he was fired, others that his ideas were incompatible with the path taken by ETH. Certainly, his vision of the economy close to the Austrian school was not in line with a non-profit foundation.    

He himself stated that:

“A lot of people hate me in the Ethereum ecosystem. They say I’m a monster”.

That’s when Charles meets the need of Japanese culture to be represented with a blockchain project and founds Cardano thanks to investors from the East.

An ICO of more than 95 million dollars leads him to review some concepts by proposing a Proof of Stake model for what he himself describes as a third-generation blockchain. 

DeFi is certainly the leading sector where to focus attention and the rumours related to the new stablecoin of Cardano are a demonstration of this.