Cryptoverse: 10 billion reasons bitcoin could become a reserve currency

economictimes.indiatimes.com:

bitcoin to back its own «stablecoin» is firing up the market. It's part of a wider movement to crown bitcoin as the reserve currency of a new age. Seoul-based Terraform Labs has so far built up nearly 40,000 bitcoin worth $1.7 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 U.S. dollar reserves.

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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. The acquisitions, and the anticipation of more to come, are supporting the price of bitcoin, with some market players identifying them as a big driver of bitcoin's climb back towards $48,000 at the end of March. More significant, perhaps, is whether others will follow Terraform's lead. «Buying $10 billion worth can move the price in the short term,» said Sid Powell, CEO of Sydney-based crypto lender Maple Finance. «But over the longer period, it's more what it signals — that bitcoin has been introduced as the hottest form of collateral backing for currencies.» Yet other market participants cautioned that an ever-closer