Do Kwon co-founder of Terra informed that the company would be buying BTC permanently to support its stablecoin TerraUSD new mints.
Bitcoin is the security asset of choice for the largest decentralized stablecoin in the world and according to its topmost executives, there is no other.
Terra Blockchain protocol co-founder Do Kwon on Monday talking to Bloomberg, vows to buy Bitcoin continuously to support the company’s TerraUSD (UST) stablecoin.
Terra has been noticed inside and outside of the cryptocurrency communities in the last few weeks due to the huge buying of BTC.
Presently with reserves above 30,000 BTC Luna Foundation guard (LFG) of Terra non-profit are expanding up to $10 billion.
Although, Kwon in his recent statement further told that Terra will keep purchasing Bitcoin to support TerraUSD (UST) as long as it is minted.
Kwon also told Bloomberg TV to remember that what is going on here is not a treasury corporate decision that I’m not purchasing BTC. The money is donated already on the community’s behalf to build the reserves and we are planning to do this on permanent bases, so around $3 billion or more we’ll be buying, in the beginning, to back up the reserves to be followed by continuous buying of BTC via TerraUSD (UST) seignorage each time minting UST, there would be new BTC added to the reserves.
Kwon also explained that by using the $1 value of other decentralized assets anyone could mint TerraUSD (UST) as a decentralized stablecoin. TerraUSD (UST) having a market cap of about $16.5 billion is the biggest stablecoin. After Tether (UsDT) the biggest decentralized stablecoin with a market cap of around $82 billion.
Kwon summarized that for creating Terra stablecoin decentralized Forex reserves they are using BTC. Kwon earlier twitted that he is committed to dominating any type of competition particularly the Dai (DAI) stablecoin of MakerDAO.
Do Kwon co-founder of Terra emphasizes that he could not move BTC markets, so the Luna Foundation Guard is still in the green.
So Kwon is about to get started in the earlier week and has yet to provide further details about the time period of purchasing Bitcoin.
After completion, the reserves of Terra will outnumber any corporate treasury, making the Kwon team the biggest BTC whale.