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Cardano can Facilitate One of the biggest Wealth Transfers in History !
Founder of Cardano, Charles Hoskinson shares his budding interest in Kiva, a platform that enables borrowers across 77 countries to preserve microloans.
Kiva might be on cards for Cardano as he is looking at it as an inspiration for Cardano’s future. He also clarifies that a number of resources must come together before Cardano can enable microloans to people all over the world in need of capital.
He points out at the major factors to come together for Cardano to facilitate microloans such as,
- Building an identity system.
- Checking if Metadata system is in the right place.
- Legitimate payment system at all places.
- Stable internet connection.
And I think to myself for me the moment I know that Cardano has truly made a difference and changed the world is if I can open up an application just like I do Kiva at the moment and I can have a direct relationship with someone somewhere in the world who is not doing so well and I can actually give them not as a gift, not as charity, but a loan to them and they pay me back and I can do that again and again and again and I win more than I lose. That to me would mean success for Cardano.
He further explains that with identity, there comes the burden of having a reputation. Social structures are to be created and formed. Stablecoins should be formed initially to give them an asset which can be spent just like they spend their local currency.
After accomplishing this he says that one must be able to earn enough profit and if it happens, everything can happen and is possible.
After the lending and borrowing ecosystem is in place, Hoskinson speculates that Cardano will be the smart contract platform that shifts wealth from a negative interest rate environment to countries that show potential for growth.
As a result, the interest rates can be higher than what we see within the negative intrigued rate world and what we see in America, enterprises will use this instrument as treasury administration work, either specifically or through organized budgetary products.
It implies that we are going to witness one of the most noteworthy capital exchanges in human history, from the developed wealthy world to the developing not so wealthy world not due to charity but because it makes marketing common sense.
Hoskinson brings out the next step that is to create security tokens that enable micro IPOs (initial public offerings) in countries where the expenses of running a business is relatively low.
The cost of running a business in Ethiopia is 10 to 50 times less than the cost of running a business in San Francisco, and it doesn’t necessarily equate to 10 to 50 times less profit. That’s the key. A whole new world opens up once this infrastructure is in place.