Cryptoverse: Is Bitcoin about to become a reserve currency?

A crypto platform's pledge to amass $10 billion (€9.2 billion) worth of Bitcoin to back its own "stablecoin" is firing up the market. It's part of a wider movement to crown 

Seoul-based Terraform Labs has so far built up nearly 40,000 Bitcoin worth $1.7 billion (€1.5 billion) in a series of purchases via a non-profit affiliate, Luna Foundation Guard, according to publicly available blockchain data.

The spree follows Terraform co-founder Do Kwon's announcement on Twitter last month that the project would buy the $10 billion worth of Bitcoin reserves to underpin TerraUSD, breaking ranks with other large stablecoins - a ballooning class of cryptocurrencies that aim to minimise wild price swings and are typically backed by US dollar reserves.

Stablecoins are a common medium of exchange and are often used by traders seeking to move funds around and speculate on other cryptocurrencies.

A stablecoin backed by Bitcoin reserves, according to Kwon, "will open a new monetary era of the Bitcoin standard", referencing the gold standard that formed the backbone of global finance about a century ago.










 

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