Charles Hoskinson, the CEO of Input Output Global and creator of Cardano (ADA), has highlighted the growing conflict between decentralized cryptocurrencies and Central Bank Digital Currencies (CBDCs). In an interview, Hoskinson argues that the real battle is not between different cryptocurrencies, but between the decentralized world of crypto and CBDCs.

Hoskinson raises concerns about the potential control measures that CBDCs could introduce, which could threaten individual financial freedom. He points to China’s integration of social credit systems with CBDCs as an example, where an individual’s financial autonomy is determined by their social conduct. This could lead to arbitrary restrictions on essential activities, such as purchasing gasoline, based on rules like carbon footprint limits.

Hoskinson also highlights the potential for transaction discrimination with the introduction of CBDCs. He suggests that financial activities could be scrutinized, categorized, and limited based on a user’s identity and the nature of their transactions. This could result in economic ostracization for those who do not align with state-sanctioned norms or belong to politically persecuted minorities.

However, Hoskinson believes that legitimate crypto projects can serve as a counter to centralized entities. He advocates for a return to a financial ecosystem grounded in decentralized operations, where cryptocurrencies play a pivotal role in resisting potentially authoritarian CBDCs. He asserts that the broader principles of decentralization will ultimately prevail, ensuring financial freedom and sovereignty for all.