#CardanoDebate LET'S REVIEW THIS?

☑️Charles Hoskinson, the founder of Cardano, has proposed converting 140 million ADA into USDM stablecoins, backed by fiat currency, to address the liquidity shortage on the Cardano network.

☑️This initiative aims to improve decentralized finance (DeFi) activity on the platform, as it currently has a low ratio between the market capitalization of stablecoins and the total value locked (TVL) in DeFi, reaching only 9.65% compared to other blockchains like Ethereum and Solana.

📌*Hoskinson's Proposal*

- Convert 140 million ADA into USDM stablecoins to increase liquidity on the Cardano network

- Utilize funds from the network's Treasury to carry out the conversion

- Goal: boost DeFi development on Cardano and generate non-inflationary income for the Treasury

📌*Reactions and Debates*

- Some community members warn about possible sell pressure and suggest minting cryptocurrency-backed stablecoins instead

- Hoskinson believes the market has enough depth to absorb the conversion without significant adverse impacts

☑️It is important to highlight that Hoskinson is also working on the development of private stablecoins for Cardano, which could position the network as a pioneer in this segment and attract users who value privacy without sacrificing legal compliance.