Cardano’s founder, Charles Hoskinson, thinks Bitcoin needs a major overhaul. He’s calling for a “crypto-native Bretton Woods” – a system where Bitcoin anchors a stablecoin system, completely independent of traditional banks.
Why Bitcoin Needs a Bretton Woods Moment
Hoskinson argues that Bitcoin was created as a reaction to the 2008 financial crisis. He’s worried that traditional finance is creeping back into the crypto world, undermining Bitcoin’s original purpose. He sees centralized, dollar-backed stablecoins as a betrayal of Bitcoin’s core principles. He prefers algorithmic stablecoins, where the value is determined by code, not by a central authority. He points to his past work on BitUSD and Cardano’s Djed stablecoin as examples of what’s possible. His ideal? A stablecoin backed entirely by Bitcoin, mimicking the way the Bretton Woods agreement used gold to back the US dollar.
Bitcoin as Collateral: Lending and Beyond
Hoskinson also believes that Bitcoin holders will want to use their assets without selling them. He suggests non-custodial lending protocols as the solution. These protocols would allow users to lend their Bitcoin, receive a stablecoin in return, and then earn interest, ultimately getting their Bitcoin back.
The Bitcoin Supply Squeeze
Hoskinson predicts a massive increase in Bitcoin demand in the next few years, driven by institutional and government buying. This, he believes, will create a Bitcoin shortage. He thinks long-term Bitcoin holders will prefer lending their coins rather than selling and paying capital gains taxes.
A Libertarian View of Money
Hoskinson takes a strong libertarian stance, criticizing the declining value of the dollar and praising Bitcoin’s scarcity. He sees Bitcoin as the first truly “hard money” in his lifetime, needing only minor improvements. He believes Bitcoin DeFi is the key to achieving this.
The Bottom Line
Whether Bitcoin will actually get its own “Bretton Woods” remains to be seen. But Hoskinson’s vision is clear: a robust, decentralized monetary system built on Bitcoin’s core principles. At the time of writing, Bitcoin was trading at $104,960.
