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Mar 17 2022

Terra’s Founder Intends to Get $10B in BTC for reserves

Terra's Founder Intends to Get $10B in BTC for reserves

Terraform Labs (TFL) has expressed plans to earn a whopping $10 billion worth of Bitcoin (BTC) to count to the mission’s stablecoin reserves.

Who is Terra?

Terraform Labs is a crypto fintech firm that employs a decentralized price-stable cryptocurrency. The firm aims to fuel the next-generation payment network and extend the true GDP of the blockchain environment.

Terraform Labs was established in 2018 by Do Kwon and Daniel Shin. The firm has its headquarters in Seoul, South Korea. Terraform Labs mints various stablecoins for e-commerce that imitate the worth of different fiat currencies. 

Terraform’s technology drives on top of a digital ledger and a corresponding wallet utilizing the stablecoin called Luna. It has dramatically lowered payment transactions from days to merely around 10 seconds. Terraform’s platform currently has 2.2 million users with a standard daily transaction of almost 90,000.

 

Terraform is supported by Coinbase Ventures, Arrington XRP, Pantera Capital, Kenetic Capital, Galaxy Digital, and Hashed. The firm gathered $25M in the latest funding held on Jan 26, 2021. This fetches Terra a total budget of $58M till now.

What’s new? Why is Kwon planning for a reserve?

Kwon reported via Twitter on Monday that Terra will not trade its aboriginal asset LUNA to create its reserves and that more news is coming soon. In early March, it was declared that Terra outperformed Ethereum to appear as the second-largest stake purchase among prominent cryptocurrencies. LUNA is the second-largest DeFi protocol after Ethereum.

Kwon also confidently highlighted that its stablecoin TerraUSD (UST), supported by over $10 billion in BTC reserves, will “unlock a fresh monetary era of the Bitcoin economy.”

“P2P electronic cash is more effortless to spend and more tempting to hold,” he added. 

$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.

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

— Do Kwon 🌕 (@stablekwon) March 14, 2022

When Twitter users asked Kwon what BTC reserves, he communicated back that the funding shall be utilized to backstop fleeting UST savings and for a decentralized foreign exchange reserve.

In a tweet Kwon additionally informed that: “We started buying BTC and Twitter verified me, I see you, Jack,” in a reply to Jack Dorsey, who is a Bitcoin enthusiast and prior CEO of Twitter.

That is the second time Kwon has expressed plans to reinforce the reserves backing Terra’s stablecoin. After TFL donated 12 million LUNA to the Luna Basis Guard LFG on Friday (value around $1 billion at present costs) to strengthen the expansion of the Terra ecosystem and the sustainability of its stablecoins, Kwon defined that the mission will stay “rising reserves till it turns into mathematically not possible for idiots to assert de-peg chance for UST.”

“Terra platform has achieved a lot of investor attention after Terra-based ETFs’ current launch,” Jay Hao, CEO of OKX added. “It is predicted to continue to be a vital part of the global payment network due to its fiat-backed protocol.”

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Blockchain Weekly Source

Written by blockchainwee · Categorized: Blockchain Weekly, Blockchain Weekly Tech, stablecoin, Terra's · Tagged: News, stablecoin, Terra's

Jan 25 2022

Bank of America believes CBDC and stablecoin adoption is unavoidable

Bank of America believes CBDC and stablecoin adoption is unavoidable

With governments from across the world keenly working on developing a fully-dedicated digital economy, the United States is also not behind in this endeavor. The recent developments are signaling towards the launch of a native Central Bank Digital Currency (CBDC) project by the financial authorities in the country. The speculations were confirmed by the Bank of America’s crypto strategists Andrew Moss and Alkesh Shah who conveyed in a blog post that the U.S will be working to create its own CBDC for revolutionizing the financial space.

According to the report by Bloomberg, the strategists stated that CBDC’s are an inevitable part of the present e-currencies cluster. The experts emphasized that there might be a surge in stablecoin adoption and usage for payment settlements in the coming years. The rise in popularity will be attributed to the shift of financial institutions to the digital asset custody and trading ecosystems. The quick adoption of blockchain technology in the industrial sector will also play a significant role in the stablecoin adoption rate. The report released on January 20, 2022, by the Federal Reserve Bank titled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation” gave a deep insight into the pros and cons related to the adoption of a CBDC by the U.S.

The crucial report by the FRB talked about various aspects pertaining to a CBDC launch in the country. It discussed if a CBDC project would enhance the capacity of a safe and reliable domestic payments cluster for households and business entities. Though the payment system is evolving, it could facilitate faster payment settlements across countries.

In the recent report, Shah and Moss speculated that the dependence on virtual currencies issued by private entities is likely to witness a striking rise. Presently, the digital currency infrastructure involving online bank accounts and payment apps is largely operated by private firms like commercial banks. Though, a CBDC is different from this as it is controlled and managed by a central bank like the Federal Reserve Bank of the United States. This helps the customers to enjoy a regulated trading experience when dealing in crypto. The report highlighted that the use of crypto can pose multiple difficulties like ensuring financial stability, protecting privacy, and controlling illegal transactions. The Fed has urged people to share their views on these issues until May 20, 2022.

The CBDCs have become quite popular amongst governments and financial institutions as they offer a perfect blend of decentralization and a regulated system. In 2020, The Bahamas launched the world’s first CBDC project called the Sand Dollar. China is also running a pilot for its digital Yuan project. In April 2021, Sweden’s central bank successfully completed the first phase of its e-krona stablecoin pilot program. 

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Blockchain Weekly Source

Written by blockchainwee · Categorized: Blockchain Weekly, Blockchain Weekly Tech, CBDC project, stablecoin · Tagged: CBDC project, News, stablecoin

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