A group of students and alumni from Harvard University launched a project aimed at solving the global debt crisis by creating Bitcoin-backed stablecoins.
At the TOKEN2049 conference in Singapore, the New Bretton Woods Project (NBW) was officially launched . This initiative, led by Harvard’s Digital Economy Research Initiative and supported by Elastos, aims to tackle the global debt crisis through DeFi services. Specifically, the project will create a solution for issuing Bitcoin-backed stablecoins.
The NBW is built on BeL2, Bitcoin’s L2 protocol developed by Elastos using SmartWeb technology. BeL2 will allow Bitcoin to be used as the basis for a decentralized financial system. Within the NBW, it’ll be possible to create BTC-backed stablecoins that will enable users to participate in the DeFi ecosystem while maintaining Bitcoin’s core principles of decentralization and security.
According to Jacob, Lead Member of the NBW, Bitcoin-backed stablecoins could become an attractive tool for cross-border payments and reduce dependence on fiat currencies, which is critical in the context of the growing global debt. These assets could be beneficial in developing countries facing economic instability and difficulties in repaying external obligations.
Sasha Mitchell, Head of Operations at BeL2, emphasized that Bitcoin-backed stablecoins can help people protect their savings from inflation and access new financial opportunities during times of economic instability.
A recent study showed that there’s a growing demand for stablecoins as a means of payment and remittance in developing countries.
