Harvard students and alumni are utilising the BeL2 infrastructure to build a Bitcoin-based stablecoin that will resolve global debt.
A group of Harvard students and alumni launched the New Bretton Woods (NBW) Project, a blockchain-based initiative that seeks to tackle the escalating global debt crisis.
The project is developing a native Bitcoin stablecoin by leveraging on the potential of decentralised finance (DeFi). Built on the innovative BeL2 infrastructure, NBW aims to tap into global financial systems, unlocking new opportunities for debt management and financial stability.
In reference to the former Bretton Woods system which pegged the value of the US dollar to the price of gold, the project reframes Bitcoin as the foundation of a decentralised financial system. Using BeL2 infrastructure, the NBW project enables smart contracts for Bitcoin-backed stablecoin construction.
Jacob, Lead Member of New Bretton Woods (NBW) at Harvard University, said, “Our goal is to create a ‘New Bretton Woods’ system anchored in Bitcoin, bringing stability through the utility of a stablecoin. This stablecoin allows users to bypass Bitcoin’s price volatility while retaining the potential for long-term gain, making the product practical for daily use.”
The native Bitcoin stablecoin will be fully backed by Bitcoin and managed by an algorithm utilising Bitcoin miners. Bitcoin will be used as collateral for Layer-2 applications such as decentralised exchanges, loans, and stablecoin issuance.
The NBW team ensures that all Bitcoin-related settlements occur on the Bitcoin main network for
maximum security. Instead of transferring assets across chains, messages are sent to Ethereum-compatible networks to issue stablecoins to users.
“Financial empowerment comes from both freedom and stability,” added Sasha Mitchell,
Head of Operations at BeL2. “By offering a stablecoin backed by Bitcoin on the BeL2
platform, NBW is giving people a way to protect their wealth and access new financial
opportunities, especially in times of economic volatility.”
“Our stablecoin isn’t just another digital currency; it’s a tool for global financial stability,”
said Jacob, Lead Member of the NBW project. “We believe that offering a decentralised and
stable currency helps individuals and communities navigate the growing challenges posed
by the global debt crisis.”
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