Cardano founder Charles Hoskinson has explained his decision to decline the integration of Cardano into El Salvador's national crypto infrastructure in 2021 due to compliance concerns and possible gang-related issues.
Rejection of Integration Proposal
Charles Hoskinson stated that he walked away from a proposal to integrate Cardano into El Salvador’s national crypto framework, citing serious issues with compliance and chaotic policy-making within President Nayib Bukele’s administration.
Planning Issues and Compliance Concerns
During his meetings with government officials, Hoskinson described a disorganized process. One example includes a statement from the Minister of Energy, who declared that 'the power of magma will be the destiny of El Salvador,' referring to the government's geothermal mining ambitions. Hoskinson noted the absence of basic planning structures and regulatory norms, which contributed to his decision to decline the proposal.
El Salvador's Continued Progress
Despite Cardano's rejection, El Salvador moved forward with its cryptocurrency plans. The country became the first to make Bitcoin legal tender and launched the government-backed Chivo wallet. Currently, El Salvador holds about 6,230 BTC, valued at approximately $679 million.
Hoskinson's decision and subsequent refusal to partner with El Salvador reaffirmed his concerns over compliance and legal risks, yet the country actively develops its crypto infrastructure.
