With the goal of transforming the financial landscape, a group of Harvard students and alumni have launched the New Bretton Woods Project (NBW), a blockchain-based initiative that includes bitcoin (BTC) as a way to provide solutions to the global economic crisis.
The project will begin to be launched in the coming weeks at the Harvard Innovation Labs, the prestigious university’s entrepreneurship and startup incubator. The plan focuses on developing a native Bitcoin stablecoinwhich “harnesses the transformative potential of decentralized finance (DeFi).”
“With the power of DeFi and blockchain, NBW is poised to disrupt the status quo and offer a bold new path to economic resilience in the face of one of the greatest challenges of our time,” the statement said. Press release which presents the project.
Technically, the project presents the idea of executing BTC settlements on the main layer of the network and communicating with protocols on Ethereum to create stablecoins.
“Our goal is to create a ‘New Bretton Woods’ system anchored in bitcoin, bringing stability through a stablecoin that will allow users to bypass BTC price volatility and retain long-term earning potential, making the product practical for everyday use,” he notes. The team at the Elastos technology company that supports the plan.
Hence, HE resume the name Bretton Woodsreferring to the agreement that emerged after the Second World War and that until 1971 supported the global financial system through gold. In this case the plan is that the backup is in digital gold: bitcoin.
Bitcoin’s native stablecoin will be fully backed by bitcoin, allowing users to experience the stability of fiat currency without liquidating their Bitcoin holdings. This offers a balance between algorithmic security through the use of bitcoin miners and the opportunity for long-term growth.
New Bretton Woods Project.
Stablecoin on Bitcoin: financial stability
According to the document, this development will be done on the BeL2 infrastructure, a layer 2 network that came into operation at the end of 2023, and that facilitates the Execution of smart contracts on the Bitcoin blockchain through zero-knowledge proofs.
“Our stablecoin is not just another digital currency; it is a tool for global financial stability,” says Jacob, a core member of the NBW project, adding that a currency that is at the same time decentralized and stable helps people and communities “meet the growing challenges posed by the global debt crisis.”
This refers to the critical economic situation that currently exists. It is overwhelming investors and citizens around the world. This is why he believes that the initiative comes at a crucial time, when global debt is reaching record levels. “By combining the decentralized structure of Bitcoin with the stability of a linked currency, the project offers a financial system that mitigates the risks of traditional economies.”
As CriptoNoticias has been reporting, bitcoin has also been proposed as a solution to the critical financial situation, as it has been considered by several countries as an asset to be included in their international reserves. Among them, El Salvador, the United States and even Venezuela stand out.
A proposal along these lines has been put forward by presidential candidate Donald Trump, backed by a bill introduced by Senator Cynthia Lummis.
As a closing to the bitcoin stablecoin project, the NBW team invites those who share his vision of a decentralized financial future and be sure to explore how they can contribute to the project.
“Whether you are a developer, investor or policymaker interested in sustainable financial solutions, this project offers a unique opportunity to shape a future focused on security, accessibility and freedom,” he concludes.
