Exclusive Interview with CEO of Cardano Foundation: Charting Blockchain, CBDCs, and Dubai’s Role

At the forefront of blockchain innovation, the Cardano Foundation stands as an independent, non-profit organization based in Switzerland. Their mission? To pave the way for Cardano, a groundbreaking public digital infrastructure, and elevate it to a position where it serves as a linchpin for financial and social systems, empowering the architects of our digital future.

This foundation’s influence extends worldwide, driving Cardano’s progress in enterprise applications. Their commitment goes beyond immediate commercial interests, as they develop critical infrastructure tools, bolster operational resilience, and diversify on-infrastructure use cases. Additionally, they play an essential role in establishing robust and inclusive governance structures.

In a rare and insightful interview organized by UAE Tech Podcast, Oscar Wendel, representing MCH-Global, engaged in a profound conversation with Frederik Gregaard, the CEO of the Cardano Foundation. 

The interview traversed the ever-evolving landscape of blockchain technology, its philosophical underpinnings, and its pivotal role in the corporate realm. As the world witnesses the advent of Central Bank Digital Currencies (CBDCs), the discussion unveiled the promises, challenges, and impact of this global shift.

Frederik’s unique insights shed light on the direction of blockchain technology, the challenges it faces, and the far-reaching implications of the emerging CBDC era.

The Cardano Ecosystem: A Brief Introduction

Frederik began by introducing Cardano, a smart contract and proof-of-stake (PoS) blockchain founded on peer-reviewed research and evidence-based development. According to him, Cardano “is boring. It works.” 

He emphasized that Cardano’s approach is well-documented, with over 180 peer-reviewed articles in the academic forum. This research-driven methodology combines pioneering technologies, offering security and sustainability to decentralized applications.

The Role of the Cardano Foundation

The Cardano Foundation, as the third entity in the Cardano ecosystem, plays a unique role, as Frederik highlighted three key areas of focus:

• Operational Resilience: This involves handling the challenges of operational resilience in a decentralized context. In Cardano, thousands of individuals and companies run nodes. Coordination is essential for operational resilience, but it’s a delicate balance to strike.

“Operational resilience and a blockchain is very, very difficult… If you start coordinating, then there might be a centralized way of attacking it,” Frederik said.

• Education: The foundation aims to bridge the gap in education regarding third-generation blockchains like Cardano. Many universities lack courses on such technologies, making education a critical aspect of Cardano’s strategy.

“The regulator, of course, is looking at this and saying, ‘Is this finance, is this industry, is this supply chain? What is this exactly?” Frederik commented.

• Adoption: The ultimate goal is to create a situation where more is contributed to the blockchain than what is taken from it. To achieve “escape velocity,” Cardano aims to build an ecosystem where users are incentivized to participate actively.

Blockchain Philosophy and the Future of the Corporate World

Moving forward, the conversation shifted towards the philosophy behind blockchain and its role in the corporate world. Frederik pondered whether blockchain will remain decentralized or become a tool for corporate giants to out-compete others.

“So, when you look at evolution, the giants who have all the capitalization, they don’t die willingly… they need evolution or disruption to trigger that,” Frederik said.

He emphasized the changing landscape, with technology companies increasingly becoming dominant in the global market. However, the question remains whether blockchain can steer the world towards a more decentralized, equitable system.

Central Bank Digital Currencies and the Role of Blockchain

The discussion then turned towards central bank digital currencies (CBDCs). Frederik explained that technology exists to maintain privacy and security in CBDCs. The critical question, however, is whether governments want such privacy.

“You suddenly have a situation where the government has full insight into what you do from a technology perspective,” Frederik explained.

He underlined the need for better tools for governments to manage their economies, especially in times of crisis. Unfortunately, in his opinion, many countries’ approaches to CBDCs do not harness blockchain’s full potential.

The Future: A Global Reserve Currency on Blockchain?

Frederik speculated about the future of blockchain and its potential to reshape the global economy. A public, permissionless blockchain could become a new world reserve currency, uniting countries across political spectrums.

“So, when you kind of look at that, I would argue that there’s probably a very heavy external force coming into the global macro-economic landscape, a public permissionless blockchain will probably be the best solution for a world reserve currency,” he explained.

In the second part of the interview, Frederik delves into the pressing issues of regulations, sustainability, and the exciting developments set to unfold at the Cardano Summit. As the cryptocurrency and blockchain space evolves rapidly, it’s essential to understand how different regions are addressing these challenges and opportunities. Frederik’s insights provide valuable perspectives on the present and future of blockchain technology.

Regulations and Global Harmonization

A significant concern in the blockchain industry is the divergence of regulations across regions. In fact, the recent introduction of MiCA, the European Union’s crypto regulations, raises questions about whether the EU, the US, and emerging blockchain hubs like Dubai can harmonize their approaches. Will there be a unified framework for the blockchain industry, or are we headed for a fragmented landscape?

Frederik emphasizes the importance of a free market, where nation-states can implement regulations tailored to their goals and cultural contexts. He commends Dubai and the UAE for their innovative approach to technology and regulation in recent years. Furthermore, he reveals that VARA, a key player in the Cardano ecosystem, will participate in the Cardano Summit’s regulatory panel, underlining their commitment to fostering dialogue with regulators and policymakers.

While acknowledging the need for different regulatory approaches, Frederik expresses hope for the establishment of a global financial market infrastructure. This infrastructure would interconnect centralized systems and blockchains, enabling the efficient exchange of value while respecting local regulatory frameworks. The goal is to reduce resource waste and refocus efforts on societal growth and well-being, rather than engaging in the costly and time-consuming processes of reconciling disparate systems.

Blockchain Sustainability and Energy Efficiency

A critical topic on the global agenda is the environmental impact of blockchain technology. Bitcoin’s energy-intensive proof-of-work (PoW) mechanism has drawn criticism for its substantial carbon footprint. In contrast, Cardano uses a proof-of-stake (PoS) consensus, which significantly reduces energy consumption. But what role does Cardano play in addressing sustainability and environmental concerns in the broader blockchain space?

Frederik commends Bitcoin for its groundbreaking role in demonstrating the potential of public, decentralized infrastructures. However, he highlights the excessive energy consumption of proof-of-work, and how Bitcoin has shed light on the environmental costs of running an international payment infrastructure. He emphasizes the importance of transparency and points out that Cardano uses a million times less energy than Bitcoin, providing a more eco-friendly alternative.

In the context of an economist’s perspective, Frederik stresses that Cardano’s primary focus is on how the technology is used, not just on market capitalization. He explains that Cardano’s native token, ADA, is designed as a gateway to access the decentralized infrastructure rather than just a form of money. This approach allows for greater flexibility and functionality when deploying assets and smart contracts on the blockchain. According to Frederik, Cardano’s utility as a technology platform is where it truly shines.

Cardano Summit 2023: Exploring Blockchain’s Potential

The eagerly awaited Cardano Summit 2023 is set to take place in Dubai, and Frederik gives us a glimpse of what to expect. Dubai’s role as a global business hub and emerging blockchain technology center makes it the perfect location for this important event. Frederik explains that the summit will feature an array of speakers, from VARA to Dr. Marwan Alzarouni, CEO of the Dubai Blockchain Center.

This year’s summit aims to encourage collaboration and networking between traditional industries and the web 3.0 sector. The goal is to explore real-world applications, promote interaction between industries, and scale up the adoption of blockchain technology. The event promises to bring a diverse group of participants, including those with extensive experience in Cardano and other adjacent blockchain projects. 

Dubai’s status as a global business hub makes it a prime venue for this pivotal event, and its focus on collaboration underscores the potential of blockchain technology in various sectors.

Dubai and the Future of Cardano

The conversation with Frederik concludes with a reflection on Dubai, the UAE market, and the Middle East’s role in the Cardano Foundation’s journey. 

Dubai’s emergence as a vibrant hub for digital assets, combined with its growing interest in blockchain technology, holds great promise. As the glittering city in the desert embraces the latest advancements in blockchain and crypto, it offers an ideal backdrop for the Cardano Summit 2023. 

The gathering in Dubai becomes a nexus for blockchain enthusiasts, fostering collaboration, innovation, and the exploration of new horizons in the world of digital currencies. The UAE’s forward-thinking approach and the visionary spirit of Dubai are primed to play a significant role in the evolution of blockchain technology.

As the Cardano Summit approaches, it is clear that Dubai’s dynamic landscape, underscored by its track record of successfully hosting major events like the Future Blockchain Summit 2023, aligns perfectly with the growing interest in blockchain and crypto. Together, these factors make Dubai the ideal stage for discussions that could shape the future of this groundbreaking technology.

With sustainability, collaboration, and global growth at the forefront, Cardano continues to demonstrate its commitment to bringing blockchain’s transformative potential to the world stage.