Bitcoin

Even if authorities are increasing their scrutiny of stablecoins, the community’s persistent interest in stablecoins that are not related to the U.S. dollar is illustrated by Hayes’ idea for the NakaDollar. NakaDollar would be a stablecoin that would not be tied to the dollar. The proposed stablecoin differentiates itself from major reserve-backed stablecoins such as Tether (USDT) and USD Coin by relying on derivatives markets that offer liquid inverse perpetual swaps rather than US dollar reserves as its backing mechanism. This is in contrast to major reserve-backed stablecoins such as Tether (USDT) and USD Coin. This stands in stark contrast to the two big stablecoins that came after it. These sorts of deals are referred to as “liquid inverse perpetual swaps” which is a fancy term for them (USDC).The combination of short BTC holdings and USD inverse perpetual swaps would serve as the stablecoin that Hayes has suggested using as its underlying structure. In order to maintain the stablecoin’s 1:1 peg to the United States dollar, transactions based on mathematics would be conducted between the new NakaDAO and allowed parties and derivatives exchanges. These transactions would be necessary. The viability of the proposed stablecoin would be contingent on their being both the availability and the liquidity on derivatives markets to engage in the trading of inverse perpetual swaps. This is an essential prerequisite that must be met before the introduction of the stablecoin.As the cryptocurrency industry continues its unyielding quest of perfection, it is virtually guaranteed that new concepts for stablecoins will emerge at some time in the near future. This might take the form of a new product or an improvement on an existing one. Yet, the regulatory framework that stablecoins operate under is also going through a period of transition. In light of this, it is of the utmost importance that stablecoin issuers make compliance and transparency their top priority in order to both attract investors and stay in line with the regulations that are now in place.Credit: <a href="https://blockchain.news/news/bitmex-co-founder-proposes-bitcoin-backed-stablecoin" rel="noopener noreferrer nofollow">Source link</a>

BitMEX Co-Founder Proposes Bitcoin-Backed Stablecoin

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