Nouriel Roubini will oversee the development of the Tokenized dollar development and aims to act as an alternative to the USD for major investors so let’s read more today in our latest cryptocurrency news.
Economist and crypto critic Nouriel Roubini will oversee the development of the tokenized asset to combat the fears of rampant economic inflation and stagnation. Roubini has been a skeptic of the crypto space which makes his own foray into the world of digitized financial instruments intriguing so in his role as a co-founder and chief economist of Atlas Capital Team LP, he will be helping with the rollout of the financial instruments to launch a security token which will act as a resilient dollar. Atlas Capital CEO Reza Bundy and Roubini both outlined plans for the company’s new products mainly driven by the current state of the economy. The Dubai-based company will work with Web3 developer Mystery Labs and will be tasked with building the technology behind the US Sovereign Governance Gold Optimized Dollar.
As Roubini outlined, the USG will start as a traditional index offering total returns swaps to investors and Atlas hopes to expand the offerings to an exchange-traded fund before moving to a tokenized version. According to the reprots, the USG will be backed by real-world assets like short-term United States Treasury bonds, real estate, and gold so the offering will be aimed at major investors like sovereign wealth funds, pension funds, and central banks exposed to the dollar-backed assets.
Roubini added that the current global socio-economic climate and the presence of the US dollar served as the world’s reserve currency. He also outlined the consequences of the conflict between Russia and Ukraine with the dollar’s role as a central instrument in global sanctions enforcement that weakens the fiat currency over time:
“Not only does it create severe friction in international trade in goods, services, commodities, and capital; it encourages U.S. rivals to diversify their foreign-exchange reserves away from dollar-denominated assets.”
Roubini thinks that this could weaken the dollar and can speed up the creation of regional monetary systems but says the move to launch a new instrument that’s effectively a more resilient dollar is a good move. The note from Atlas outlining the plans for a launch of USG also closed off with negative comments towards the crypto space. He noted that cryptos are not backed by anything and don’t provide income or use any utility services so they are just speculative.
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