Charles Hoskinson, co-founder of Ethereum and Cardano, believes Japan is on the cusp of becoming Asia’s leading cryptocurrency hub, provided the country embraces the technology and fosters its adoption. In a recent interview with The Japan News in Tokyo, Hoskinson shared his vision for cryptocurrencies and their potential to reshape global governance systems.
Reflecting on his early interest in cryptography, Hoskinson recalled how his fascination with Austrian economics and the concept of sound money eventually led him to the world of Bitcoin. “I was very interested in cryptography and mathematics and also I liked Austrian economics and the whole concept of sound money. And all those concepts kind of converged together with the internet and social media, and it became Bitcoin,” he explained.
At 36, Hoskinson sees cryptocurrencies as more than just speculative assets. To him, they represent a programmable form of money that can be adapted and evolved. “This is something that’s deeply appealing to me, because it maximizes personal freedom and also allows us to get along in a global world with less conflict overall,” he said. He added that the current systems of governance are outdated, unable to manage the complexities of today’s global society. “We’re getting a lot more conflict now because the old governance systems are not able to run this type of world, and we need new governance systems for it.”
Cryptocurrencies, which operate without the backing of central banks, are based on blockchain technology—a decentralized, peer-to-peer network that records and verifies transactions. This decentralization, according to Hoskinson, establishes an “objective truth” in monetary transactions, making crypto a trustworthy asset class.
Hoskinson emphasized that blockchain’s uses extend far beyond cryptocurrency trading. “Blockchain has facilitated fast, low-cost transfers of money around the clock,” he said, pointing out that its applications have expanded into supply chains, voting systems, gaming, and intellectual property. The potential for blockchain to transform industries is vast, though many consumers are still unfamiliar with the technology.
He suggested that many people may first encounter blockchain through familiar products, such as PlayStation consoles, if companies like Sony decide to adopt the technology. “The spread of such new technology will be exponential,” Hoskinson predicted.
Despite the optimism, challenges remain. Hoskinson acknowledged that for blockchain to truly scale as a global system, it needs to solve issues like reintroducing identity to prevent money laundering and counter terrorism financing. “We have to add identity back, in a high integrity way, and we haven’t quite figured out how to do that as an industry yet,” he admitted. However, he remains confident that once these challenges are overcome, decentralized versions of popular platforms like YouTube, Facebook, and even artificial intelligence could become reality.
Turning his attention to the U.S., Hoskinson discussed the role government policies might play in the future of cryptocurrency. He noted that political figures, such as former President Donald Trump, have shifted their stance on crypto. Trump, once a vocal critic of cryptocurrency, promised during a Bitcoin conference in July to make the U.S. the “crypto capital of the planet,” raising $10 million for his campaign in the process.
Hoskinson explained this change, saying, “It’s important to understand that people go through journeys and evolutions based on lived experience. Today, [Trump] thinks that the institutions of the United States are corrupt … and are persecuting him. So he’s very distrustful of government.”
Hoskinson argued that if the U.S. adopts pro-crypto policies, Japan will likely follow, spurring a massive increase in crypto adoption. He believes Japan has a unique opportunity to become the “crypto hub of Asia,” especially with China showing reluctance towards the technology. He further suggested that Japanese brands such as Mitsubishi, Toyota, and Sony could play a pivotal role in shifting the government’s stance if they find a way to make crypto safe and accessible.
“Japan has a way of learning from the West, taking the best lessons home, and after figuring it out within 10 or 20 years, becoming a world leader. We’ve seen that happen multiple times,” Hoskinson observed. However, he noted that Japan needs a visionary like Vitalik Buterin, the young co-founder of Ethereum, to truly drive innovation in the crypto space.