Arthur Hayes Calls for Bitcoin-Backed Stablecoin
BitMEX co-founder Arthur Hayes believes that the crypto industry’s fallout with main banking partners calls for the introduction of a new extra or much less stablecoin.
In a March 9 weblog put up, Hayes proposed the “Satsoshi Nakamoto Buck” or NakaDollar (NUSD) – a stablecoin that is also backed by Bitcoin and an inverse Bitcoin perpetual swap.
In its set of relying on the custody of fiat banks for tokenization, NUSD would be supported by crypto exchanges that list these Bitcoin derivatives. On the opposite hand, Hayes opined that nearly all effective centralized exchanges would be in a position to facilitate this, seeing as their decentralized counterparts are “nowhere end to as liquid.”
The first step in bringing NUSD to lifestyles would be to salvage a decentralized self reliant group (DAO), total with its possess governance token NAKA. The reason of this may maybe maybe be to secure a funding pool for the initial stock of NUSD supply. Both NAKA and NUSD would be ERC-20 tokens on the Ethereum blockchain.
“If this resolution had been embraced by traders and exchanges, it may maybe maybe maybe consequence in a wisely-kept enhance in Bitcoin derivatives begin curiosity, which would in turn salvage deep liquidity,” mentioned Hayes.
In maintaining with compare from Kaiko, stablecoins may maybe maybe well presumably take on a better role within the crypto financial system as existing fiat fee rails dwindle. Most recently, one in every of the industry’s most on the total extinct banking partners Silvergate mentioned it used to be winding down operations in a voluntary liquidation. (CEO of Custodia Bank Caitlin Prolonged shared what she thinks Silvergate’s loss of life methodology for crypto and banking on Unchained.)
Analysts at Kaiko opined that in this new put up-Silvergate atmosphere, traders would deposit dollars with stablecoin issuers moderately than centralized exchanges.
“The risk is, though, that stablecoin issuers calm need access to a crypto financial institution, so the threat is now extra concentrated,” they mentioned.
Source credit : unchainedcrypto.com
