Mar 09, 2023

NakaDollar Proposed: USD-Independent Stablecoin Unveiled

As U.S. regulators continue to monitor the stability of the U.S. dollar, the crypto community is looking for new ways to create a stablecoin that is independent of the U.S. dollar. Arthur Hayes, the co-founder and former CEO of the BitMEX cryptocurrency exchange, recently proposed a new stablecoin, dubbed the ‘Satoshi Nakamoto Dollar’ (NUSD), or NakaDollar.

The NakaDollar is proposed to be pegged to the sum of $1 worth of Bitcoin (BTC) and one inverse perpetual swap of BTC against USD, as outlined in Hayes’ blog post titled “Dust on Crust”, published on March 8. Unlike major U.S. dollar-pegged stablecoins like Tether (USDT) and USD Coin (USDC), the proposed NakaDollar would not require any USD reserves, but instead be backed by derivatives exchanges that list liquid inverse perpetual swaps.

The NakaDollar would be created by a decentralized autonomous organization (DAO) known as NakaDAO, and its value would be maintained by mathematical transactions between the DAO and authorized participants and derivatives exchanges. This process of creating the NakaDollar stablecoin would be entirely free from any movements of USD, which require the services of banks.

The news of the proposed NakaDollar follows the recent shutdown of Silvergate Bank, a major crypto-focused bank in the United States. This shutdown came quickly after the New York Department of Financial Services ordered the Paxos Trust Company to stop the issuance of Binance USD (BUSD), one of the largest U.S. dollar-pegged stablecoins on the market.

Binance CEO Changpeng Zhao has also suggested that the cryptocurrency industry will likely move to other fiat currencies as a base for stablecoins, including euro, yen, or Singapore dollars.

The NakaDollar is an interesting development in the crypto space, and could be the first of many USD-independent stablecoins to come. It is also a great example of how the crypto industry is continuing to innovate and find ways to offer financial services that don’t require the use of banks.

The NakaDollar could provide an interesting opportunity for NFT marketing and promotion, as well as provide a platform for selling NFTs. It could be a great way for web3 agencies to get involved in the crypto space and provide services to those looking to promote their NFTs and sell them for a profit.

Twitter NFT marketing could also be a great way to promote the NakaDollar and increase its adoption. With the right NFT marketing agency, the NakaDollar could become a major player in the crypto space and provide a new, USD-independent stablecoin for those looking to hold and transact in digital currency.

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