As mentioned in an earlier report by CNF, Hoskinson outlined a vision in which the technology and the ecosystem of Cardano could benefit both XRP and Bitcoin. He also emphasized the importance of the RWA market and emphasized that Cardano has the potential to play an important role in playing this market in the next five years its forecast evaluation of $ 13 trillion.
Cardano wants to redefine stable coins with the first blockchain-based privacy version
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- Charles Hoskinson proposes a privacy stable on Cardano, which guarantees the data protection of customers and is still in accordance with the regulation.
- Cardano wants to be the first blockchain that offers a data protection -friendly stable coin with selective disclosure for regulatory requirements.
Cardano founder Charles Hoskinson has the opportunity expressedto develop a privacy table on the Cardano blockchain. The new project should take into account the growing concerns about data protection.
Traditional stable coins such as USDT and USDC are often criticized for making transaction details public on blockchains. In response to this, Hoskinson wants to create a stable coin that is as private as cash so that users can hide their transactions from unwanted surveillance.
Need for data protection for stable coins
Hoskinson’s comments come at a time when interest in digital data protection solutions and anonymity in cryptocurrency transactions is growing. Stable coins that are coupled to traditional assets such as the US dollar are an important part of the crypto ecosystem. However, acceptance was restricted by concerns about privacy. Customers are often in the situation that every StableCoin transaction can be traced back, which makes it difficult for individuals to keep their financial activities secret.
In an interview with the Podcast “Conversations with Leaders”, Hoskinson said that many users feel uncomfortable with the idea that every purchase and every transaction is stored in a public blockchain. This has led to an increased interest in privacy coins, which, in contrast to conventional cryptocurrencies, enable users to hide their financial activities from prying eyes.
It introduces itself a new type of stablecoin that combines privacy and compliance with each other, so that users can be discrete and at the same time meet the legal requirements. In his view, data protection stable coins are the key to a broader acceptance of cryptocurrencies, since many individuals and organizations hesitate to make their transaction protocols public.
Selective disclosure to comply with regulations
While data protection -oriented cryptocurrencies such as Monero and Zcash have to deal with regulatory problems, Hoskinson believes that Cardano’s data protection -friendly stable coin can find a balance. According to the Cardano founder, the solution lies in a method that he calls “selective disclosure”. This would make it possible for stablecoin transactions to be private for regular users, but certain details could be disclosed to the regulatory authorities if necessary.
Hoskinson explains that this mechanism of selective disclosure would enable the Cardano blockchain to be compliant with the regulations without endangering the privacy of the users. The supervisory authorities could still access the transaction data if this is necessary by a court decision or an official order, but the public would not be able to understand the transactions of the users. In his opinion, this is the key to clearing up regulatory concerns and at the same time protecting privacy that some users expect from cryptocurrencies.
This concept of selective disclosure has already been used in other privacy coins such as Firo and Zcash, who tried to implement “whitelist addresses” that can be verified for regulatory purposes. However, the supervisory authorities were skeptical of such solutions, which is why the privacy coins were removed from the large stock exchanges. At Cardano, Hoskinson believes that the combination of data protection and compliance with regulations will enable the network to meet the needs of both the user and the supervisory authorities.
The growing StableCoin market and the role of Cardano
The StableCoin market has grown to $ 243 billion. However, most stable coins are located on Ethereum, Tron and Solana. Stable coins such as DJED, USDA and USDM have a combined market capitalization of $ 31.69 million on Cardano. Cardano supports these stablecoins, but the transactions they affect are still visible on the blockchain, which is a problem for users who value privacy.
Since Hoskinson Cardano wants to make the first blockchain that introduces a stablecoin based on privacy, he also pointed out the data protection -oriented Sidechain Midnight as a key function to enable this. The Midnight Side Man, which is designed for private transactions, could be the technical basis for a data protection-friendly stable coin on Cardano.
Despite the advance for data protection solutions, the regulatory environment for data protection coins is difficult. The European Union has announced that stock exchanges and custody platforms are no longer allowed to act with private cryptocurrencies from July 2027. In the United States, the genius law with which stable coins was to be regulated was stopped due to concerns about money laundering control and financial stability.
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