Currently, US regulators are waging a crackdown on stablecoins. Despite everything, the crypto community does not hesitate to launch new stablecoin projects. Many of these projects are independent of the US dollar. Speaking of which, the former CEO of crypto exchange BitMEX recently proposed a bitcoin-based stablecoin project.
A stablecoin to completely break free from the dollar
Last month, Binance announced its desire to launch a non-dollar-backed stablecoin. Now, BitMEX co-founder Arthur Hayes is exposing his stablecoin project called Satoshi Nakamoto Dollar (NUSD) or NakaDollar. The new digital asset will be backed by bitcoin (BTC), not the dollar. It was thought out with the aim of freeing itself from the movements of the USD which are linked to banking services. The value of the stablecoin will be equal to 1 dollar worth of bitcoin.
The NakaDollar stablecoin will not depend on any reserve of dollars, unlike assets like Tether (USDT) and USD Coin (USDC). It will be based only on BTC short positions and USD reverse perpetual swaps.
However, the NUSD will not be truly decentralized. It will be based on centralized derivatives exchanges. “I ruled out decentralized derivatives exchanges, as they are nowhere near as liquid as their centralized counterpartssaid Hayes.
How to free bitcoin from the movement of fiat currencies?
The idea for Arthur Hayes’ new stablecoin project was featured in an article titled “Dust on Crust.” In the blog post published on March 8, we can read: “The ultimate question is, how do you remove the need to use dollars or any other fiat currency to buy bitcoins? Solving this puzzle requires the majority of the largest economic systems in the world to pay for goods and receive salaries in bitcoins.“.
Hayes added that every bitcoiner dreams of this state of affairs, but it may never happen. He highlighted : “For now, we are stuck in a sort of purgatory. We have escaped the hell that was the purely fiat financial world before 2009, but we have not yet ascended to heaven with our Lord Satoshi, where we will behold the infamous fiat devil from heaven.“.
The former BitMEX CEO’s project comes after the suspension of the SEN exchange by Silvergate Bank. The shutdown was decided quickly after Paxos Trust had to stop issuing BUSD tokens under the order of the New York Department of Financial Services.
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