Banks are interested in holding ADA instead of Bitcoin

Source: Immersion – Shutterstock

• Frederik Gregaard points out that many banks are interested in holding 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, participated in the 113th edition of the podcast “The Cardano Effect”. Gregaard was hired to take up his position in late 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 the obstacles and use cases Cardano can solve, Gregaard said:

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

The ADA standard instead of BTC

The CEO of the Cardano Foundation said positively 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 Cardano has around the world. In this sense, he sees a clear path for the adoption of ADA at the institutional level, speaking of the obstacles that have prevented the acceleration of the adoption of Cardano, added Gregaard:

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

Expanding the previous point, the CEO of Fondazione Cardano spoke about the privacy characteristics that ADA must have in order to be adopted by banking institutions. Gregaard believes that there is a 1 to 1 parity in terms of privacy between Bitcoin and ADA. The only difference between 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 own business on Bitcoin, they can run their own business on ADA (…) I’m already starting to talk about the ADA standard, because I think people should run their own business on ADA.

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

How do we support them, how do we bring confidence in this, how do we increase the business model? Parameter k will be changed, what does it really mean? This is the thing the Foundation should go out and take some ownership of.