Bitcoin (BTC) is the security of choice for the world’s largest decentralized stablecoin, and one of its top executives says there was no other.
Speaking to Bloomberg on April 4, Do Kwon, co-founder of blockchain protocol Terra, vowed to continue buying BTC to back the company’s stablecoin, TerraUSD (UST).
Kwon: BTC purchases will continue ‘forever’
Terra has been making waves inside and outside the crypto community over the past few weeks thanks to its massive Bitcoin purchases.
With currently just over 30,000 BTC, the reserves of the non-profit Terra Luna Foundation Guard (LFG) are expected to grow to the equivalent of 10 billion US dollars.
However, in his recent comments, Kwon went further, saying that as long as UST is minted, Terra will continue to buy BTC to back it.
“One important thing to remember is that this is not a Treasury Department decision in the sense that I am not buying Bitcoin,” he told Bloomberg TV.
“I’ve already donated money to help us build these reserves on behalf of the community and we plan to do this on a permanent basis, so the approximately $3 billion we’re initially buying to build the reserves will be followed.” of… continued purchases of bitcoin by UST seniors… each time UST is minted there will be new bitcoin added to reserves.”
As a decentralized stablecoin, anyone can “mint” UST by burning another $1 worth of decentralized asset, Kwon explained. UST is the largest decentralized stablecoin with a market cap of around $16.5 billion. Tether (USDT), the largest stablecoin overall, has a market cap of $82 billion.
“The easy way to understand this is that we are using Bitcoin to create a decentralized forex reserve for the Terra stablecoin,” he summarized.
Everyone hails the biggest bitcoin whale?
Kwon is active on Twitter and has previously promised to be overshadow any form of competition, especially MakerDAO’s DAI stablecoin.
See Also: “Hold My Beer” – Terra Has Already Gained $165M From Buying Bitcoin As BTC Supply Closes To Tesla’s
The Luna Foundation Guard is well in the green as Terra co-founder Do Kwon stresses that he is not “able to move bitcoin markets.”
While cryptic tell Supporters that he “just got started” last week, Kwon has yet to provide any more specific details on the BTC purchases timeframe.
The LFG wallet last saw inflows on March 30th. With 30,727 BTC, it is the 29th largest BTC address.
Once this is complete, Terra’s reserves will surpass any company’s treasury, making Kwon and his team the biggest Bitcoin whale.
https://cointelegraph.com/news/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve Biggest Future BTC Whale Explains Why Bitcoin Was Selected for ‘Decentralized FX Reserve’