In the United States, the authorities have started a small war against stablecoins, but the community has little or nothing to do with it. In fact, Arthur Hayes, the co-founder of BitMEX, suggests to develop a new Bitcoin-based stablecoin with a value pegged to the US dollar.
Satoshi Nakamoto Dollar
Hayes calls his idea the Satoshi Nakamoto Dollar (NUSD) or the NakaDollar. Unlike US dollar-backed stablecoins like Tether (USDT) and USD Coin (USDC), the NakaDollar does not lean on actual US dollars.
The Satoshi Nakamoto Dollar, on the other hand, is leaning up inverse perpetual swapswhich is a financial product designed to speculate on financial instruments like Bitcoin, without owning the actual underlying assets.
The idea is to base the proposed stablecoin on some short positions on Bitcoin and inverse perpetual swaps of the US dollar. In this way, the stablecoin must maintain a 1:1 connection to the dollar through transactions between a number of decentralized autonomous organizations (DAOs).
The weak point
Hayes also acknowledges that there is also a weakness in his idea, namely that the NakaDollar depends on centralized derivatives exchanges. “The point of failure for the NakaDollar would be in centralized derivatives exchanges. I exclude decentralized derivatives exchanges because they are by far not as liquid as their centralized competition,” said Hayes.
Hayes’ idea comes shortly after the US Securities and Exchange Commission (SEC) decided to eliminate Paxos’ Binance USD (BUSD) stablecoin. At least, eliminate is a big word, because it is just not allowed to issue new BUSD anymore. Existing BUSD may continue to manage it.
In February, that even led Binance CEO Changpeng Zhao to speculate on the rise of stablecoins based on fiat currencies other than the US dollar. In that regard, exciting times are ahead in the world of stablecoins and the crypto industry in general.
