Harvard students and alumni have launched the 'New Bretton Woods Project' (NBW) to address the global debt crisis using decentralized finance (DeFi) solutions.

The founders of the NBW Project emphasize the need for a financial system that merges Bitcoin's decentralized nature with the stability of a pegged currency, particularly in light of rising global debt.

As of mid-2024, the national debt of the United States has surpassed $35 trillion, with approximately $1 trillion being added every three months.

Interest payments on this national debt now exceed the entire budget for the Department of Defense, underscoring the severity of the financial crisis.

This rampant increase in debt is largely attributed to years of monetary printing and structural deficits that continue regardless of economic conditions.

Sasha Mitchell, Head of Operations at BeL2, stated that the project aims to provide financial empowerment through freedom and stability during economic volatility.

Jacob, the Lead Member of NBW, highlighted the project's goal of creating stability through a stablecoin that allows users to bypass Bitcoin's price volatility.

The Bitcoin stablecoin will be fully backed by Bitcoin, allowing users to experience stability akin to fiat currency while maintaining their Bitcoin holdings.

The initiative will be incubated at Harvard Innovation Labs, focusing on developing a native Bitcoin-backed stablecoin through the BeL2 infrastructure.

The BeL2 infrastructure enables decentralized finance applications while ensuring Bitcoin remains secure on its main network, allowing users to maintain control of their Bitcoin.

The NBW team invites developers, investors, and policymakers to contribute to the initiative, which aims to reshape global financial systems and promote economic stability.

Ultimately, NBW seeks to empower users amid rising global debt levels by combining Bitcoin's decentralized structure with the stability of a pegged currency.