Cardano Founder Discusses Ripple USD Integration And USDC Deal Failure

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In a recent dialogue about X, Charles Hoskinson, CEO of Input Output Global (IOG) and founder of Cardano, responded to accusations concerning the Cardano Foundation’s (CF) handling of stablecoin integrations. He also hinted at exciting prospects with Ripple‘s RLUSD, stirring discussions about potential partnerships between Cardano and Ripple. This interaction highlighted ongoing disagreements among Hoskinson, the CF, and some members of the community, as well as the prospective collaborations that Cardano might engage in with Ripple.

Conflict Over Cardano Foundation’s USDC Deal

The disagreement arose when Cardano staking pool operator @matiwinnetou accused the Cardano Foundation (CF) and Charles Hoskinson of failing to introduce popular stablecoins onto the network. In his opinion, the CF is ineffective due to having too much ADA and unwillingness to invest it into large-scale budgets. He further stated that the Cardano blockchain, being decentralized, struggles in a centralized L1 (Layer 1) environment. Additionally, he suggested that Charles Hoskinson’s actions may sometimes worsen the situation instead of resolving it.

Charles Hoskinson quickly debunked the idea that Input Output Global (IOG) was responsible, instead accusing the Cardano Foundation of past decisions concerning USDC integration. “The CF had the opportunity to integrate Circle back in 2021 for $3 million when their assets were nearly worth $2 billion,” Hoskinson said, according to one of their employees. He later added, “You then rewrite history to avoid any of their accountability and turn it into power struggles? I’m genuinely glad you no longer work for me. Dishonest people have no place at IOG.

In a contribution to the ongoing discussion, user Jane (@Jane14457995) expressed her disapproval of Hoskinson’s tone, stating: “I don’t know who is correct in this argument, but I find the tone unappealing and I believe it could potentially be self-defeating. In a video from nine months ago, I recall you explaining that the absence of USDC for Cardano was more intricate than initially perceived. It seems unnecessary to criticize a previous employee, which is below your standing in my opinion.

As a crypto investor, I find myself expressing my disappointment over Hoskinson’s revelations about the Cardano Foundation (CF). He claims that they missed an opportunity by not funding stablecoin-related projects and even opposes alternate budget proposals at this moment. His words echo frustration: “Once again, the CF defends itself and its representatives, masquerading as neutrality. When someone deceives and misguides, they will eventually face consequences.” He firmly believes that the CF rejected a deal in 2021.

Cardano’s creator, Hoskinson, emphasized the community’s demand for stablecoin support: “It’s clear that the community wants USDC, needs CNT liquidity, and requires better Oracle assistance. The Community Facilitator could provide these services or delegate them to the budget. My problem is that while they step aside from the first option, they also aim to undermine the second by voting against the budget. This way, everyone suffers.

He emphasized that Cardano’s expansion plans could be jeopardized if a viable stablecoin isn’t developed. “The current resources aren’t sufficient to support the ecosystem, its growth, upcoming partnerships, and promotional efforts, even if Input Output Global (IOG) works without pay. This is a battle worth waging because it’s crucial for the long-term survival of the entire ecosystem.

Pivot Toward Ripple’s RLUSD

In the course of our conversation, I proposed the idea of collaborating on a stablecoin project with Ripple, drawing attention to the improved relationship we’ve been cultivating with their community and suggesting that this partnership could potentially be more straightforward and cost-effective compared to other avenues. I then posed the question, “Would IO or Intersect be open to such an endeavor if CF declines?

Hoskinson stated, “If there’s a feasible way to incorporate RLUSD, I’ll make an effort to do so as a gesture to the community. Cardano would greatly benefit from a robust stablecoin ecosystem, including USDM, Djed, and potentially RLUSD. It seems like a logical alignment in values that could be beneficial for both communities.” Jane then tagged Brad Garlinghouse, the CEO of Ripple, suggesting that “it appears to be a natural match in terms of shared ideals, with potential advantages for both parties.

Jane, I’m delighted to inform you that we’ve initiated discussions: “Hoskinson has confirmed we’ve already connected with the RLUSD team. Our conversations are currently ongoing.

Two weeks ago, Hoskinson mentioned that talks with Ripple were just getting started, suggesting a possible integration of Ripple’s technology into Cardano’s upcoming private-centric sidechain, Midnight. He expressed his desire for Ripple to be part of the Midnight system, highlighting the initial collaboration between the two teams.

As per Hoskinson, there have been continuous discussions with David Schwartz, Ripple’s Chief Technology Officer, exploring ways both platforms can mutually gain. In other words, there are dialogues happening between the teams behind Midnight and Ripple, and these conversations encompass not only business aspects but also a great deal of technical exchanges. Moreover, they have been endeavoring to acquire more knowledge about how Ripple’s technology operates.

Even though there are promising indications, Hoskinson emphasized that establishing formal partnerships often demands patience. He explained, “Initially, we only had technical discussions, and David [Schwartz] has been incredibly helpful and a valuable resource. Once we move past these talks, however, there’s more integration work and other tasks to tackle. Overall, they have been easy to collaborate with.

At press time, ADA traded at $0.92

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2025-01-13 19:12