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Reading: BitMEX Co-founder proposes stablecoin with Bitcoin as collateral
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HOME > News > CRYPTOPEDIA > BITCOIN NEWS > BitMEX Co-founder proposes stablecoin with Bitcoin as collateral
BITCOIN NEWSCRYPTOPEDIANews

BitMEX Co-founder proposes stablecoin with Bitcoin as collateral

NFT Studio 24
Posted NFT Studio 24 March 10, 2023 94 Views 3 Min Read
Updated 2023/03/10 at 12:13 AM
BitMEX Co founder proposes stablecoin with Bitcoin as collateral
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BitMEX co-founder and former CEO Arthur Hayes, has proposed the creation of a new stablecoin called the Satoshi Nakamoto Dollar (NUSD), which would be entirely independent of the US dollar.

Contents
CEO BitMEX Arthur HayesRevolutionary new stablecoinUnlike other stablecoins

The NUSD would be pegged to the sum of $1 worth of Bitcoin and one inverse perpetual swap of BTC against USD, making it different from major reserve-backed US dollar-pegged stablecoins like Tether (USDT) and USD Coin.

CEO BitMEX Arthur Hayes

Arthur Hayes, the co-founder and former CEO of BitMEX cryptocurrency exchange, has put forward a groundbreaking proposal. To create a new stablecoin called the Satoshi Nakamoto Dollar (NUSD in a blog post titled “Dust on Crust” on March 8th.

This visionary idea would peg the value of the stablecoin to the sum of $1 worth of Bitcoin and one inverse perpetual swap of BTC against USD, creating a truly innovative and exciting new financial instrument.

Unlike traditional reserve-backed stablecoins such as Tether (USDT) and USD Coin, which rely on USD reserves, the proposed NakaDollar would be backed solely by liquid inverse perpetual swaps listed on derivatives exchanges.

This means that the stablecoin would be completely independent of any USD reserves and would instead draw its strength from the highly liquid and dynamic world of derivatives trading.

Revolutionary new stablecoin

With the idea of this revolutionary new stablecoin.Hayes is once again demonstrating his visionary leadership and willingness to push the boundaries of what is possible in the world of cryptocurrency and blockchain technology.

Hayes believes that the proposed NakaDollar stablecoin will not depend on any USD reserves, but solely on derivatives exchanges.

The stablecoin would be based on a set of short BTC positions and USD inverse perpetual swaps. Maintaining its 1:1 peg to the US dollar via mathematical transactions between the new decentralized organization (DAO) — NakaDAO.

Unlike other stablecoins

The process of creating the NakaDollar stablecoin would be entirely free from any movements of USD.

Hayes stated that the proposed NUSD stablecoin would not be decentralized and added,

“The points of failure in the NakaDollar solution would be centralized crypto derivatives exchanges. I excluded decentralized derivative exchanges because they are nowhere near as liquid as their centralized counterparts.”

Hayes is not alone in considering USD-independent stablecoins amid the ongoing pressure from regulators. In February, Binance CEO Changpeng Zhao suggested that the cryptocurrency industry will likely move to other fiat currencies. Including euro, yen, or Singapore dollars.

The proposal for the NakaDollar stablecoin comes at a time when regulators in the United States are increasingly scrutinizing stablecoins. The owner of Silvergate Bank, a major crypto-focused bank in the United States, recently shut down operations and liquidated business.

TAGGED: Arthur Hayes, BitMEX, Satoshi Nakamoto

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