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The Terra Corporate Finance Alliance has received funding from some of the largest cryptocurrency exchanges operating today. Binance Labs, Huobi, OKEx and Upbit’s parent company Dunamu have all invested in the Terra Stablecoin project along with other firms who have invested in blockchain technology. This suggests an interest in creating a coin that doesn’t experience volatile price fluctuations. You could buy Bitcoin to use as a method of payment, but this will expose yourself whilst holding the Bitcoin as opposed to a stablecoin.

The Terra Alliance was formed back in 2002 by European corporate finance departments to improve members’ ability to serve clients by the sharing of cross-border perspectives and initiatives. It consists of 14 firms who have a coverage of more than 40 countries worldwide. The development of the stablecoin is an initiative to improve the efficiencies of cross-border transactions by reducing barriers. Traders that buy and sell cryptocurrency can utilise a stablecoin by converting their holdings to and from depending on the direction the market is moving.

The Terra cryptocurrency can be compared to the International Monetary Fund’s (IMF) Special Drawing Right in which the price will be pegged to a basket of currencies, as stated in their whitepaper. As the project develops it will include basic goods and services that have functional usage around the world. Gold, corn and timber are some considerations. Pegging a token to physical assets may give some investors assurance to buy crypto as we look towards greater use cases for it.

If you’re looking to buy crypto or keep up to date with the latest cryptocurrency news, then head over to BC Bitcoin.

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