On 1 October 2023, the crypto influencer known as “ADA Whale” shared his thoughts on the digital economy and Cardano’s role in it via social media platform X. He emphasized the distinction between his personal desires and realistic expectations for the future of cryptocurrency.
ADA Whale believes that the digital economy is akin to a voluntary system that people can choose to participate in. He likens it to a Venezuelan citizen opting to open a U.S. bank account, but in this case, the “country” is the Cardano blockchain. Within this digital economy, ADA serves as the base currency, complemented by stable coins like Djed and USDM and various other tokens. He notes that transactions can easily occur between individuals who are part of this digital ecosystem.
In contrast, the traditional economy relies on fiat currency, which comes with its own set of fees and taxes. ADA Whale points out that while fiat transactions have historically been cumbersome, they are becoming increasingly frictionless for small amounts due to technological advancements. He argues that this diminishes the need for blockchain-based payment systems like “ADA Pay” or “Solana Pay” for stable coins, as they wouldn’t offer any novel advantages.
However, ADA Whale acknowledges that significant friction still exists for large or international fiat transactions. In such cases, he believes that cryptocurrencies could offer a solution. He also speculates that a non-stable crypto coin, like Bitcoin, could gain global acceptance, allowing merchants to accept direct payments in it, provided that government regulations permit it.
ADA Whale also envisions a future where applications enable payments in crypto while settling merchant transactions in fiat. He clarifies that his views are not a critique of the utility of cryptocurrencies or stable coins but rather an analysis of the practical path to their widespread adoption.
Featured Image via Unsplash