Cardano founder Charles Hoskinson has reignited his long-standing criticism of Circle, the issuer of USDC. He accused the company of engaging in practices that undermine the cryptocurrency industry. His latest remarks highlight concerns about Circle’s influence, particularly its selective approach to blockchain integrations and hard forks.
Hoskinson’s Renewed Criticism of Circle
Hoskinson has always criticized entities he believes are detrimental to the crypto ecosystem. This time, his criticism targets Circle’s operations, particularly its approach to supporting blockchain networks. According to him, Cardano has benefitted by not integrating USDC, avoiding the challenges other networks have faced with the stablecoin issuer.
The Cardano founder pointed to Circle’s role in Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) in 2022. At the time, Circle declared that USDC would only function on the new PoS chain, refusing to support PoW forks. Hoskinson views this as a demonstration of Circle’s power to shape blockchain ecosystems, often prioritizing its interests over broader network decentralization.
The Failed USDC Integration Talks
Hoskinson’s latest statements followed an update from Frederik Gregaard, CEO of the Cardano Foundation, regarding discussions with Circle. Gregaard recently revealed that he met with Circle’s executives in the UAE to explore potential integration, but the talks ultimately failed.
Hoskinson further disclosed that Cardano rejected a $3 million deal in 2021 to support USDC. He alleged that the Cardano Foundation, under its former CEO John MacPherson, initially turned down the offer, only to reconsider it when the deal had become significantly more expensive. He also clarified that Input Output Hong Kong (IOHK), Cardano’s core development company, had no role in these discussions or decisions.
Circle’s Approach to Blockchain Networks
A key point of Hoskinson’s critique revolves around Circle’s discretionary support for network upgrades and hard forks. Unlike decentralized entities that align with blockchain roadmaps, Circle selectively decides whether or not to support major network changes.
This approach, according to Hoskinson, gives Circle an outsized influence over the ecosystems that integrate USDC. Networks that rely on the stablecoin could be at the mercy of Circle’s decisions, rather than following their independent development trajectories.
The Bigger Picture: Control vs. Decentralization
Hoskinson’s concerns reflect broader debates about the role of centralized entities in the crypto industry. Stablecoins like USDC play a crucial role in liquidity and adoption, but their issuers hold significant power over the networks on which they operate. Critics argue that such control contradicts the fundamental principles of decentralization, while proponents believe it ensures stability and regulatory compliance.
For Cardano, the absence of USDC might mean fewer liquidity options, but it also ensures the network retains its autonomy. Hoskinson’s latest remarks reinforce his commitment to decentralization and skepticism toward entities that wield disproportionate control over blockchain ecosystems.
Hoskinson’s renewed attack on Circle underscores a growing concern in the crypto space—how much influence centralized stablecoin issuers should have over blockchain networks. His statements also highlight why Cardano has resisted integrating USDC, prioritizing its independence over the potential benefits of a widely adopted stablecoin.
As the debate over decentralization and corporate influence continues, Cardano’s stance on USDC could set a precedent for other blockchain networks seeking to maintain control over their future.
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