Terraform Labs (TFL) founder and Ethereum competitor Terra Do Kwon has laid out plans to raise up to $10 billion in Bitcoin (BTC) to top up the project’s stable reserves.

Terra is a decentralized blockchain platform specialized in stablecoin mining. Terra USD (UST) is an algorithmically stable currency that is pegged to the value of the US dollar, with the value of the US dollar partially maintained by the corresponding amount from Terra’s native token (LUNA).

However, there are few specific details at the moment. On Monday, Kwon tweeted that Terra would not be selling its initial LUNA holdings to build up its reserves and that more information would be coming soon.

Kwon also expressed optimism that his TerraUSD (UST) stablecoin, backed by over $10 billion in BTC reserves, will usher in a new monetary era for the bitcoin standard.

“P2P cash is easier to use and more convenient to store,” he added.

Cointelegraph contacted Kwon to see if the plans had already been put into action or if it was just an idea put forward for now, and the founder simply responded:

“I don’t understand the difference, we are already buying bitcoin.”
When users on Twitter asked Kwon what the BTC reserves would be used for, he replied that the funds would be used to end the short-term repayment of land-based treasuries and the decentralized foreign exchange reserve.

In a tweet shortly after, Kwon also noted, “We started buying BTC and Twitter confirms me, see you Jack,” referring to Jack Dorsey, Bitcoin bull and former CEO of Twitter.

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This is the second time this month that Kwon has laid out plans to increase the reserves backing the terra stablecoin.

After TFL donated 12 million LUNA on Friday to LFG’s Luna Foundation Guard (worth about $1 billion at current prices) to support the growth of the Terra ecosystem and the sustainability of its stablecoins, Kwon explained that the project will continue to “grow” reserves until until it becomes mathematically impossible. Fools should speak out about the dangers of shutting down underground tanks.”

According to Coingecko, UST currently has a market capitalization of $15.12 billion.

Source: CoinTelegraph