Terra Buys Nearly IDR 2 Trillion BTC To Build Stablecoin Reserves

Terra bought almost IDR 2 trillion BTC to build his stablecoin. (Binance Academy)

JAKARTA – Terra announced that it will release its own stablecoin backed by Bitcoin (BTC) reserves worth IDR 143 trillion. Most recently, they bought 2,943 BTC, or around IDR 1.98 trillion, on Wednesday, March 30.

According to a CryptoPotato report, Terraform Labs CEO Do Kwon will be releasing a stablecoin (UST) backed by BTC. This is a distinct step from other stablecoins that are backed by currencies such as the US dollar, euro, or other fiat currency. This makes it the typical way to go.

Do Kwon's announcement shook the crypto community. One of them was Blockstream CEO Adam Black who questioned where the money was coming from. Kwon himself explained that the project would raise IDR 143.5 trillion in due course. However, now only IDR 43 trillion has been collected which is prepared for BTC accumulation.

After that, Terra started buying Bitcoins destined for the project's BTC addresses. Meanwhile, their first two purchases were on March 22 last. Both total 1,500 Bitcoins. The address continues to accumulate reserves with yesterday's transactions totaling 2,943 BTC or IDR 1.98 trillion at the current value

Terra's own wallet shows it has over 30,000 BTC. According to the current value, the amount is equal to IDR 20.25 trillion. CEO Terra said in an interview that he was interested in Bitcoin because it is the strongest digital reserve asset.

“The reason we are so interested in Bitcoin is that we believe it is the strongest digital reserve asset. UST will be the first internet native currency to implement the Bitcoin standard as part of its monetary policy,” said Kwon