Economist Nouriel Roubini, a crypto skeptic known as “Dr. Doom” is developing a tokenized asset that aims to be a more resilient US dollar. “Our goal is to create a global store of value… This is something like a replacement for government bonds or a digital asset that includes payment capabilities.”

Tokenized USD alternative by Nouriel Roubini

Economist Nouriel Roubini announced this week that he is developing a range of financial products, including a token asset called the United Sovereign Governance Gold Optimized Dollar (USG), which aims to act as a more resilient dollar against high inflation, climate change and civil unrest, Bloomberg reported.

Roubini is a longtime crypto skeptic who has called Bitcoin “the mother of all bubbles.” He teaches at New York University’s Stern School of Business and has his own business consulting firm called Roubini Macro Associates. Famous for predicting the collapse of the 2007-2008 housing bubble, his dire predictions have earned him the nickname “Dr. downfall” in the media.

dr Doom is working with Atlas Capital Team, a Dubai-based real estate investment and management firm, to develop the new products. He joined the company two years ago and is currently its chief economist.

Roubini explained that the dollar could be in jeopardy as the US “prints too much money and adversaries start debasing the dollar.” He stated:

We are aware that the US dollar reserve currency could be at risk and are working to create a new instrument that is effectively a more resilient dollar.

His plan came as a surprise to the crypto community as he has been one of Bitcoin’s most vocal critics for many years.

Roubini also explained his plan on Twitter on Monday. “The digital rail will have very strict AML/KYC capabilities, so it will be a digital asset-backed security with serious ESG [Environmental, Social, and Governance] Characteristics — i.e. sustainable real estate. So the digital option is just one of the three and an end point, not a starting point,” he tweeted.

The economist continued:

First, USG begins as a hedge against inflation, debasement of fiat currencies, financial crisis, political and geopolitical risks, and environmental risks. That is the core idea, not the digital path.

He added: “Second, the implementation of USG is first an index that you can write TRS to [total return swap]then a mutual fund or ETF [exchange-traded fund]. And finally and finally as a security token, not backed by vaporware like most junk in crypto, but by real/financial assets so you know its market value/NAV at all times.”

The new dollar would be backed by “a mix of short-dated US Treasuries, gold and US real estate (in the form of Real Estate Investment Trusts or REITs),” the economist noted, adding that they are likely to be less affected by climate change.

Reza Bundy, co-founder and CEO of Atlas, said:

Our goal is to create a global store of value… This is something like a replacement for treasuries or a digital asset that includes payment capabilities.

Roubini expects his new product to appeal to large investors looking for an alternative to the usual mix of stocks and bonds. He noted that sovereign wealth funds, pension funds, and even central banks that hold large reserves of dollar-denominated assets could be interested.

What do you think of Roubini’s tokenized dollar alternative project? Let us know in the comment section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

photo credit: Shutterstock, Pixabay, WikiCommons

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