- CEO of Cardano, Charles Hoskinson, calls traditional banks a Ponzi scheme.
- He says that crypto projects have been a good escape valve during this troubling time.
- His speech moves other crypto and blockchain believers.
The CEO of Cardano, Charles Hoskinson, takes to Twitter and YouTube to share his take on the current traditional banking system in the USA. Specifically, he highlights the crash of renowned traditional banks Silicon Valley Bank and now, Credit Suisse.
So far, traditional banks and traditional finance believers have been blaming the crypto sector for this crash. In reality, crypto has been a saving grace for many. In fact, traditional banks were bound to collapse eventually as they function on the principle of borrowing and lending credit.
Thus, Hoskinson calls traditional banks a Ponzi scheme and says their fall was inevitable. He then goes on to refute the claim that cryptocurrency is the cause of the banking crisis and instead considers it as an ‘escape valve’ from the corrupt banking system.
Furthermore, he believes that the crisis is due to issues such as money printing and fractional reserve banking, both of which are necessary to sustain the traditional money system. Hoskinson also points out that losses from the banking system are often socialized and passed on to society.
On the other hand, he does accept that some crypto companies have been just as bad as traditional finance. In particular, some even did contribute to the currency turmoil in the financial sector. So, Hoskinson argues that factors such as corruption, nepotism, and mishandling of the health crisis are also to blame.
Ultimately, he says that it is crypto that provides an alternative solution. Through his time as the CEO of Cardano, Hoskinson has been a strong believer in not only improving the lives of humanity with blockchain technology, but also changing all the old failing traditional structures for the better.
His video and observations invoked the fire that keeps other crypto and blockchain believers growing, developing, and building. As we can see from the long tweet above, Patrick Tobler was inspired by Hoskinson’s video and says his fire has been refueled by it.
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