Frederik Gregaard, CEO of the Cardano Foundation, believes that a blockchain infrastructure for capital markets will make controversial top-down interventions unnecessary.
Statement from the famous CEO
Frederik Gregaard, CEO of the Cardano Foundation, took the conversation in the context of the balance of powers, the rules of the game, or little guys, hedge funders, brokers, Robinhood and regulators.
Some participants in the stock craze saw themselves as supposed rebels and trolled the system using their own tools. While many criticize their strategies and narratives for political reasons, Gregaard instead focuses on technology, transparency, and rationalization in response to the illnesses of the system. His approach seeks to appeal to both the popular cynicism and cunning expressed by the rejectors and the self-interest of institutional and systemic actors.
Analyzing Robinhood’s controversial decision to tighten trade amid the GameStop incident, Gregaard said:
“We now know that the main problem that forces Robinhood to set higher margin requirements for certain positions is the intensity of trading activity. This overloaded the capacity of multiple actors in the buying, selling and settlement process. In turn, this situation led to the accumulation of consensus demands and then liquidity problems for bartering objects. ”
Beyond transparency, Gregaard also revealed that the speed and efficiency of the clearing and settlement process will be enhanced in itself by choosing a distributed system like blockchain.
“There are opportunities for synergies and working partnerships between traditional financial institutions and decentralized ledger technology leaders,” Gregaard said. He also said, “As the blockchain industry matures, regulations will also mature. These can lead to a pleasant legislation that allows the blockchain to provide an immutable audit trail of all transactions. ” He also emphasized.
Gregaard finally made the following statements:
“With an open source blockchain infrastructure like Cardano, everyone is free to explore our code and develop solutions to apply to our blockchain. This is a potential use case that we believe can help innovation, and we welcome change makers. ”