According to Cointelegraph, Harvard students and alumni announced the launch of the New Bretton Woods Project, which aims to create a Bitcoin-backed stablecoin to combat the global debt crisis.

The project will build a Bitcoin stablecoin on the Bel2 network, allowing users to borrow and issue stablecoins while retaining control of BTC.

A project spokesperson explained that the Bel2 infrastructure leverages the security of Bitcoin, performs Bitcoin settlements on the main layer, and communicates with the Ethereum protocol to mint stablecoins.

The Harvard Innovation Lab will also work with students and alumni to advance the project.

The U.S. national debt will exceed $35 trillion in July 2024, and interest payments have exceeded the Department of Defense's spending. Senator Cynthia Lummis proposed the Bitcoin Strategic Reserve Act, and former President Donald Trump also suggested using Bitcoin to repay the national debt.