- Cardano founder Charles Hoskinson claims he rejected a 2021 proposal to implement Cardano in El Salvador due to concerns over a planned crypto airdrop that could have included MS-13 gang members.
- His account has sparked skepticism within the crypto community, while El Salvador moved forward with its Bitcoin adoption independently.
Cardano founder Charles Hoskinson has revealed that he walked away from a potential deal to integrate Cardano into El Salvador’s national crypto infrastructure in 2021, citing serious compliance concerns and chaotic policy-making within President Nayib Bukele’s administration.
In a recent interview on the Shawn Ryan Show, Hoskinson detailed what he described as a whirlwind week of meetings that ultimately ended with him rejecting the proposal.
“The Power of Magma” and Chaotic Planning
Hoskinson painted a disorganized picture of El Salvador’s early Bitcoin adoption efforts. During his visit, he met with government officials, including a flamboyant Minister of Energy who reportedly declared, “The power of magma will be the destiny of El Salvador,” referring to the administration’s geothermal-powered Bitcoin mining ambitions.
Hoskinson claimed that basic planning structures were absent. When asked about regulatory compliance for adopting cryptocurrency, officials allegedly responded with, “We don’t have any,” and admitted to using President Bukele’s Facebook posts as informal policy guidance.
Airdrop to MS-13?
However, the deal-breaker came during consultations with U.S. authorities. Hoskinson stated that Bukele intended to airdrop Bitcoin to every citizen in El Salvador. This raised immediate red flags, as such a move would potentially include members of MS-13, a gang classified as a Transnational Criminal Organization by the U.S. Office of Foreign Assets Control (OFAC).
Bukele wanted to do an airdrop to everybody, Hoskinson explained. But MS-13 is on an OFAC list. If we give Bitcoin to everyone, we’re facilitating a transfer of value to a terrorist organization. That’s no bueno.
Additionally, Hoskinson claimed that cooperation with U.S. agencies was impossible under the Biden administration, which he said had adopted a “regime change” posture toward Bukele. Ultimately, he decided to walk away from the deal after a week of failed discussions.
El Salvador Moved Forward Anyway
Despite Cardano’s rejection, El Salvador forged ahead with its Bitcoin plans. It became the first country to make BTC legal tender and launched the government-backed Chivo wallet. Today, the nation holds approximately 6,230 BTC, valued at around $679 million.
Hoskinson acknowledged the significance of the move, saying, “It actually made Bitcoin the official currency and forced the IMF and other transnational bodies to start recognizing Bitcoin.”
Community Reaction and ADA Performance
Hoskinson’s remarks sparked skepticism in the crypto community. Bitcoin advocate Cory Bates questioned the accuracy of the account, while the analyst known as The Bitcoin Therapist dismissed it as “the dumbest sht I’ve ever heard.”*
As of now, no official response has been made by the Bukele administration or U.S. authorities regarding Hoskinson’s claims.
Meanwhile, Cardano’s ADA token has shown modest gains, up 2% over the past week, though still down over 12% for the month and well below its all-time high of $3.09.
