While stablecoins are increasingly scrutinized by regulators in the United States, the community continues to come up with new ideas for stablecoins independent of the US dollar.
Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, has proposed creating a new stablecoin with a value pegged to the sum of $1 worth of Bitcoin (BTC) and a reverse perpetual swap of BTC against USD. He border the idea of the potential Satoshi Nakamoto Dollar (NUSD), or NakaDollar, in a blog post titled “Dust on Crust” on March 8.
Unlike major reserve-backed US dollar-pegged stablecoins such as Tether (USDT) and USD Coin (USDC), the proposed NakaDollar will not rely on any USD reserves, but solely on derivatives exchanges listing liquid inverse perpetual swaps. Hayes said.
The proposed stablecoin would be explicitly based on a set of BTC short positions and USD inverse perpetual swaps, maintaining its 1:1 peg to the US dollar through mathematical transactions between the new decentralized autonomous organization (DAO), NakaDAO, participants. authorized and derivative exchanges. .
The process of creating the NakaDollar stablecoin will be completely free of any movement of USD, which requires the services of banks, Hayes stated. He still pointed out that the proposed NUSD stablecoin won’t actually be decentralized, adding:
“The points of failure in the NakaDollar solution would be the centralized crypto derivatives exchanges. I excluded decentralized derivatives exchanges because they are not as liquid as their centralized counterparts (…)”
The news comes amid the shutdown and business liquidation of the owner of Silvergate Bank, a major cryptocurrency-enabled bank in the United States, amid the current market downturn. The shutdown came quickly after the New York Department of Financial Services abruptly ordered Paxos Trust to halt issuance of BUSD, one of the largest USD stablecoins on the market. As previously reported, Paxos had deposits with a few banks, including Silvergate and Signature crypto bank.
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Hayes is not alone in considering USD-independent stablecoins amid ongoing pressure from regulators. In February, Binance CEO Changpeng Zhao suggested that the cryptocurrency industry will likely move to other fiat currencies as a base for stablecoins, including the euro, yen, or Singapore dollar.
