According to CNBC, LFG acquired the money through a $1 billion OTC swap with crypto broker Genesis and a $500 million bitcoin acquisition from hedge fund manager Three Arrows Capital on Thursday (May 5, 2022).

LFG paid $100 million for BTC in April. The UST algorithmic stablecoin reserve currently has roughly $3.5 billion in bitcoin, ranking it among the top ten bitcoin holdings in the world.

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Do Kwon, the co-founder, and CEO of Terraform Labs, revealed plans to raise $10 billion in BTC as collateral for UST in March. Do Kwon intends to reach this target by the end of the third quarter of 2022.

"For the first time, you're beginning to see a pegged currency aiming to follow the bitcoin standard," Do Kwon said in a statement. It's betting that maintaining a large portion of its foreign reserves in a digital national currency would be a profitable strategy."

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European Central Bank releases Privacy scenario for Central Banks Digita Currency

When it comes to CBDCs, one of the key public worries is the possibility of privacy invasion. The European Central Bank (ECB) has released a presentation covering this topic, arguing that the Eurosystem should only have access to the essentials of transaction information and that user anonymity is not the desired design choice.

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In response to EU citizens' concerns about the privacy implications of a CBDC, the ECB's presentation presents three alternative privacy measures for the digital currency.

To begin with, the existing baseline case, which is identical to digital transactions through private banks, allows digital euro mediators such as financial institutions to access transaction information while the ECB does not. According to the presentation, transparency is necessary for "anti-money laundering and counter-terrorist financing."

The bank described the alternatives as "preferred" for digital money. For low-value/low-risk payments, one might allow for more anonymity, implying "simplified checks" on transactions. High-value payments, however, will be subject to ordinary restrictions.

Related Post:EU bans anonymous crypto activities involving exchanges

The last option provides anonymity, as transactions and balances are not visible to intermediaries and the central bank. The bank stated that this offline alternative might only be provided for lower value payments or lower risks.

According to crypto venture consultant Patrick Hanse, the offline payment situation is "theoretically fairly similar to actual currency payments."