'We're Already Buying': Terra Founder Plans $10 Billion Bitcoin Reserve

The founder of Terraform Labs (TFL) and ethereum rival Terra (LUNA) Do Kwon has outlined plans to accumulate up to $10 billion worth of bitcoin (BTC) to add to the project’s stablecoin reserves.

Terra is a decentralized blockchain platform specializing in stablecoin minting. Its Terra USD (UST) is an algorithmic stablecoin pegged to the value of the U.S. dollar, which is partly maintained through its equivalent native token, LUNA.

Details are still unclear, but Kwon said via Twitter on March 14 that Terra will not be selling its native asset LUNA to build a reserve, and more information will be announced soon.

Kwon also optimistically highlighted that its stablecoin TerraUSD (UST), backed by more than $10 billion in Bitcoin reserves, will “start a new monetary era on the Bitcoin standard.”

He added: "P2P electronic cash is easier to spend and more attractive to hold." UST, with more than $10 billion in bitcoin reserves, will usher in a new currency era of the bitcoin standard.

P2P electronic cash is easier to spend and more attractive to hold #btc

— Do Kwon (@stablekwon) March 14, 2022

Cointelegraph reached out to Kwon to find out if the plan had already begun, or if it was just an idea for now, to which Kwon responded simply:

"I don't understand the difference between the two, we're already buying bitcoin."

When a user on Twitter asked Kwon what the BTC reserves would be used for, he replied that the funds would be used to support short-term UST redemptions and decentralized foreign exchange reserves.

In a tweet shortly afterward, Kwon also noted: “We started buying BTC, Twitter verified me, I saw you, Jack,” a nod to Bitcoin bull and former Twitter CEO Jack Dorsey.

This is the second time this month that Kwon has outlined plans to bolster the reserves backing Terra’s stablecoin.

After TFL donated 12 million LUNAs (worth around $1 billion at current prices) to the Luna Foundation Guard LFG on Friday to support the growth of the Terra ecosystem and the sustainability of its stablecoin, Kwon outlined that the project will Continue to "increase reserves until it is impossible for a fool to claim that UST is at risk of decoupling."

According to Coingecko, UST’s market capitalization is currently $15.12 billion.