‘Magnificent 7' Could Adopt Stablecoins in Next 3 Years, Says Crypto Platform Founder
Japan News file photo
Charles Hoskinson during his visit to Tokyo in September 2024
Cardano blockchain founder Charles Hoskinson expects IT giants will enter the cryptocurrency space within three years, spurred by U.S. President Donald Trump's vow to make America the crypto capital of the world.
'Now institutional investors like the BlackRocks, the Goldman Sachses and large companies like the 'Magnificent 7,' like Microsoft and Google and Apple, are much more likely to enter the cryptocurrency space,' Hoskinson told The Japan News in an online interview in May. Using crypto 'saves them money,' he added.
When firms sell products abroad, they normally have to conduct transactions through middlemen, such as local payment systems and banks that charge commissions. On top of which, there are fees for changing currency. However, if a firm has a cryptocurrency on its own network, it can save money through direct transactions, said Hoskinson, who also cofounded Ethereum blockchain platform.
'Facebook tried about five, six years ago with a project called Libra, which later became Diem, and unfortunately it fell apart because the regulation just wasn't there for issuing a stablecoin,' he said. But because of Trump's support, 'it's very likely within the next 12 to 36 months that these large companies will enter in, including Japanese companies.'
He added that if companies like Toyota Motor Corp. adopt this technology, their dealerships could pay them with tokenized yen to save on transaction fees. Businesses did not use crypto previously because of 'the compliance issues and the legal issues. But now that the United States is entering the space, it's opening up the laws.'
Planning for the long term
In January, Trump signed an executive order to establish a strategic reserve for bitcoin, mirroring existing reserves for petroleum and gold. He followed that up with an order to promote legitimate dollar-backed stablecoins and hosted a first-of-its-kind crypto summit in March.
The sudden and successive announcements have even surprised Hoskinson. In March, he learned from a post by Trump on his app Truth Social that the strategic crypto stockpile would include Ethereum, XRP, Solana and Hoskinson's own Cardano.
'When the Federal Reserve discusses interest rates, they say it over 30, 40 pages of dense prose and very careful language. They typically don't tweet,' said Hoskinson, adding, 'That is just the nature of this president.'
Hoskinson's concern now is whether the slew of new policies will hold long-term. The White House under U.S. President Joe Biden had taken a tough stance on cryptocurrency, but now the Trump administration is targeting this asset for its reserve. The drastic shift in policy is 'creating some heartburn for us in the industry,' said Hoskinson.
To ensure that crypto policies last, he noted the industry is working very closely with the Senate Committee on Banking, Housing, and Urban Affairs as well as the House Committee on Financial Services, 'trying to pass laws for many administrations.'
'Trump will no longer be president in January of 2029, but whatever laws we pass will likely still be in effect at that time period,' he said. 'So that's why we're very focused in those directions.'
'Above my pay grade'
Trump has also become personally involved in crypto ventures. In January, he launched the $TRUMP memecoin, and the coin's top 220 buyers recently won access to an exclusive gala dinner with the president.
In March, World Liberty Financial, Inc., a crypto project affiliated with the Trump family, announced that it would issue a stablecoin pegged to the U.S. dollar at a 1:1 ratio. Although these coins are not controlled by the government, the move has drawn allegations that Trump is using his position to enrich himself.
Hoskinson said he doesn't take a negative or positive view of Trump's actions, as judging the president is 'above my pay grade.'
'We don't really try to pick winners or losers,' he added. 'We just say, 'Are there good laws and also are the markets growing and are we achieving our commercial ends?''
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