Loss Of Decentralized Entities Is Crypto’s Death: Cardano CEO

Charles Hoskinson, CEO of Cardano believes that Decentralized identifiers (DIDs) are essential for assuring compliance without falling prey to exchanges’ interpretations of anti-money laundering legislation. He answered during a Q&A session at the 2022 Web Summit conducted in early November 2022 which was just published.

According to Hoskinson, centralized exchanges like Coinbase and Kraken may be able to restrict the movement of your cryptocurrency off their exchanges in order to comply with standards set forth by the international anti-money laundering watchdog the Financial Action Task Force, such as the Travel Rule.

If a virtual asset transfer exceeds $1000 USD or €1000 EUR, the service provider is required by the Travel Rule to “hold, and transmit required originator and beneficiary information, immediately and securely when conducting VA transfers.

Hoskinson Bullish On Decentralized Crypto Entities

According to Hoskinson, many large organizations are actively seeking ways to establish decentralized identities. Hoskinson predicted that within two years, this sector would be among the most competitive in the industry.

He asserts:

“It’s going to be one of the most competitive areas in the space in the next 24 months.” 

He thinks a decentralized organization has the best chance of coming out on top. MAS has already completed the first Industry Pilot Program For DeFi by using Polygon And Aave Blockchain. The co-creator of Cardano emphasized the need for a decentralized economic identity.

He explained:

“It’s about lifting people up out of a circumstance where they’re beholden to an intermediary who basically gets to decide their entire experience,” 

When queried on Twitter about the viability of accepting Dogecoin payments, Hoskinson responded that doing so would be difficult due to the cryptocurrency’s low transaction fees. Since Binance put up $500 million toward Musk’s purchase of the social networking site, he recommended adopting the BNB Chain. Hoskinson speculated last month that DOGE and Twitter might one day be integrated.