Cardano: Banks are interested in holding ADA instead of Bitcoin

  • Frederik Gregaard points out, that a lot of banks are interested to hold Cardano (ADA).
  • ADA has the same data protection features as Bitcoin, so financial institutions could easily hold ADA instead of Bitcoin.

The CEO of the Cardano Foundation, Frederik Gregaard, has participated in the 113th edition of the podcast “The Cardano Effect”. Gregaard was hired to take his position at the end of September. Previously, he was Head of Digital Finance for the giant PwC. In the podcast he talked about ADA adoption, privacy, leadership and the future of Cardano.

Starting the program with a user question about obstacles and use cases that Cardano can solve, Gregaard said:

If you want the short answer, I’d like to focus on some of the very complex problems, the highly regulated problems, the problems that don’t cross the table easily where identity is very important. That revolves around financial services, insurance, supply chain tracking (…) financial education, the whole academic angle is important.

The ADA standard instead of BTC

The CEO of the Cardano Foundation positively stated that his connections in the banking sector indicate that cryptocurrencies and blockchain technology “are here to stay”. Gregaard said he is reviewing and compiling the many alliances that Cardano has throughout the world. In that sense, he sees a clear path for the adoption of ADA at an institutional level, talking about the obstacles that have prevented Cardano’s adoption from accelerating, Gregaard added:

(On the adoption of ADA by banking institutions) I already know some banks that can do this, but I’m not allowed to mention their names because they think there may be some regulatory turmoil, I need to agree with them before I disclose them (…) but it can be done today, and there are possibilities for that in the future. As a banker I know which buttons I need to push.

Expanding on the previous point, the CEO of the Cardano Foundation spoke about the privacy features that ADA must have in order to be adopted by banking institutions. Gregaard believes that between Bitcoin and ADA there is a 1 to 1 parity in terms of privacy. The only difference between the cryptocurrencies, the executive said, is in their consensus protocol.

(Proof-of-Stake) allows you to have a little less privacy than you have with the Bitcoin protocol. If people can run their business on Bitcoin, they can run their business on ADA (…) I’m already starting to talk about the ADA standard, because I feel that people should run their business on ADA.

Finally, the executive spoke about the future of the Cardano Foundation and its position in the Cardano ecosystem. Gregaard said that there will be a further development of the technical capabilities of the Cardano Foundation to serve as a support to IOHK in the development and implementation of the subsequent platform eras: Goguen, Basho, and Voltaire. The Cardano Foundation will also support developers who will use the platform when introducing smart contracts and other new Cardano features:

How do we support them, how do we bring confidence in that, how do we increase the business model? The k-parameter will be changed, what does that really mean? That’s the thing that the Foundation should go out there and take some ownership.

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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