In a live feed On November 25, Charles Hoskinson, Cardano founder and CEO of Input Output Global (IOG), expressed serious concerns about the Wyoming stablecoin project, highlighting what he sees as procedural misconduct and unfair exclusion of the Cardano blockchain.
Cardano founder speaks
Hoskinson began by recounting the initial optimism surrounding the Wyoming Legislature’s passage of a cryptocurrency law nearly two years ago, which aims to enable the state to issue its own asset-backed stablecoin. “Almost immediately after this proof-of-concept bill was introduced, many people in Wyoming government and beyond reached out to Input Output to ask for our advice and suggestion on how we want to work with government,” he said.
Over the past year and a half, IOG has been extensively involved in the development phase of the project. “We decided to serve on the subcommittee and provided a significant degree of advice over about a year and a half in many, many meetings about the things that needed to be done for such a project to be successful,” Hoskinson revealed. Discussions covered key aspects such as issuance and redemption processes, compliance, technology standards, and strategies to compete with established stablecoins like Circle and Tether.
However, Hoskinson expressed his dissatisfaction with the appointment of an executive director, who, according to him, favors the Ethereum ecosystem contrary to the goal of the bill. “By law, this executive came from the Ethereum ecosystem with, I think, some background at Polygon, and from the beginning he made statements that the coin should be issued first in the Ethereum ecosystem, which was in direct conflict with the intent of the authors” of the project. The law wanted the Wyoming-based stablecoin to be multi-chain,” he claimed.
He criticized the committee’s process for selecting blockchain platforms, which he described as vague and exclusionary. “They decided to create their own standards and act as judge, jury and executioner in a very short period of time through the pre-qualification process,” Hoskinson said. He claimed that Cardano was excluded based on assertions that he lacked certain abilities, without having the opportunity to prove otherwise. He stressed that “there was no opportunity for public comment, and there was no opportunity for appeal or appeal.”
Hoskinson did not mince words regarding the legality of the committee’s actions. “I believe this is illegal and unconstitutional against the state constitution and the good faith of state laws,” he said. He said the process gave “an unfair competitive advantage to other ecosystems” and that “the Wyoming government is starting to pick winners and losers.”
Highlighting the broader impact, Hoskinson noted that many other blockchain platforms were similarly excluded. “Not only was Cardano left out; He noted that over 29,900 blockchains were also excluded in this pre-qualification process. He expressed concern that the commission’s actions could undermine Wyoming’s reputation as a cryptocurrency-friendly state. He said: “This is the first time in the history of the state that a state employee has made an arbitrary and capricious decision to exclude people from participating.”
Looking to the future, the Cardano founder noted that IOG is exploring all available options, including potential legal action. “Moving forward, there are many options, and we at IOG will pursue them – options at our discretion,” he declared. He stated that many Wyoming lawmakers are “deeply dismayed and disturbed by this behavior,” and question whether the project should be canceled or its funding halted.
Despite his frustrations, Hoskinson reiterated his commitment to Wyoming and its potential as a hub for blockchain innovation. “I think Wyoming is still a great place to start a cryptocurrency business, and I think there are a lot of very well-intentioned people out there,” he said. He stressed the importance of fair treatment, especially in light of the significant investments made by IOG in the state. “I would like to believe that those investments were wise and that we will be treated fairly and the rule of law will prevail,” Hoskinson stated.
He also warned that Wyoming risks losing its competitiveness if such practices continue. “If Wyoming wants to retain the crypto companies that have incorporated there, it needs to ensure there is a perception that it is still the best place, including a strong commitment to the rule of law and a government that doesn’t pick winners,” the Cardano founder warned of losers.
Concluding his remarks, Hoskinson expressed his hope for a solution but remained steadfast in seeking justice. “We will solve the problem and solve it because this is just the beginning; this is by no means the end,” he emphasized. “Remember, I live there. “I’m not going anywhere.”
At press time, ADA was trading at $1.04.
Featured image from YouTube, chart from TradingView.com
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