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BitMEX co-founder Arthur Hayes proposes Bitcoin-based stablecoin

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Summary

BitMEX co-founder and former CEO Arthur Hayes has proposed a new stablecoin, the Satoshi Nakamoto Dollar (NUSD), which would be pegged to the sum of $1 worth of Bitcoin (BTC) and one inverse perpetual swap of BTC against USD. Unlike reserve-backed U.S. dollar-pegged stablecoins, the NakaDollar would not depend on any USD reserves but rather solely upon derivatives exchanges that list liquid inverse perpetual swaps. The proposed stablecoin would be created free from any banking services, but is not decentralized. The news comes amid increased scrutiny of stablecoins by US regulators, as well as the shutdown of a major crypto-focused bank in the US. Hayes' proposal joins other ideas for USD-independent stablecoins, such as those based on the euro, yen, or Singapore dollars.

Q&As

What is the proposed Satoshi Nakamoto Dollar (NUSD) stablecoin?
The proposed Satoshi Nakamoto Dollar (NUSD) stablecoin is a stablecoin with a value pegged to the sum of $1 worth of Bitcoin (BTC) and one inverse perpetual swap of BTC against USD.

How will the proposed NakaDollar stablecoin be free from any movements of the U.S. dollar?
The proposed NakaDollar stablecoin will be entirely free from any movements of the U.S. dollar, which require banking services, by maintaining its 1:1 peg to the U.S. dollar via mathematical transactions between the new decentralized autonomous organization (DAO) — NakaDAO — authorized participants and derivatives exchanges.

What is the current regulatory environment for stablecoins in the U.S.?
The current regulatory environment for stablecoins in the U.S. is increasingly scrutinizing.

What is the reaction of the cryptocurrency industry to increasing U.S. regulatory scrutiny?
The reaction of the cryptocurrency industry to increasing U.S. regulatory scrutiny is to pitch new ideas for stablecoins independent of the U.S. dollar and to consider using other fiat currencies as a base for stablecoins, such as euro, yen, or Singapore dollars.

What are some other countries leading the way in blockchain adoption?
Some countries leading the way in blockchain adoption include the United States, Japan, South Korea, Singapore, and China.

AI Comments

👍 Arthur Hayes' proposal for a Bitcoin-based stablecoin is an innovative and creative solution that offers a more resilient alternative to reserve-backed stablecoins.

👎 The proposed Satoshi Nakamoto Dollar is not decentralized and would depend on centralized crypto derivatives exchanges, making it vulnerable to failure.

AI Discussion

Me: It's about a new stablecoin proposed by Arthur Hayes, co-founder and former CEO of BitMEX. It's called the Satoshi Nakamoto Dollar and would be pegged to the sum of one dollar worth of Bitcoin and an inverse perpetual swap of BTC against USD.

Friend: That's interesting. What implications does this have?

Me: Well, it could mean that the cryptocurrency industry is moving away from the U.S. dollar as a base for stablecoins, as it will be entirely free from any banking services. This could be beneficial to those who want to move away from the dollar, as it would provide more options. On the other hand, it could lead to more scrutiny from regulators, as they may see it as a way to avoid their regulations.

Action items

Research the potential implications of the proposed Satoshi Nakamoto Dollar (NUSD) stablecoin.
Explore the potential of other fiat currencies as a base for stablecoins.
Follow the progress of the crypto bill draft in the United States and other countries leading the blockchain adoption.

Technical terms

BitMEX: A cryptocurrency derivatives exchange founded in 2014.
Satoshi Nakamoto: The pseudonym of the creator of Bitcoin.
Stablecoin: A type of cryptocurrency designed to maintain a stable value relative to a fiat currency or other external reference.
Regulation: The process of setting and enforcing rules and regulations to ensure the safety and integrity of a market or industry.