An overview of current news in the crypto space
In our digest, we took a look at some important crypto industry news from the past week:
- ByBit and Huobi exchanges shared plans to list PayPal’s PYUSD stablecoin
- Sichuan provincial authorities plan to invest $34 billion in the metavillage industry
- FTX cryptocurrency exchange founder wants to sit in jail only on weekends
- SpaceX sold $373 million worth of bitcoins
- Kazakhstan unveils digital tenge project
And now for more details. Reading time: 7 minutes.
- Payment system PayPal has launched its own stablecoin, PayPal USD (PYUSD), which will be fully backed by dollar deposits, short-term treasuries and similar financial instruments. The company is now beginning its gradual rollout to the mass market. According to statements, PYUSD will be used mainly in the cryptocurrency and Web3 sectors, to exchange for other crypto-assets or for payments in blockchain games. However, subsequently, the stablecoin will gradually gain traction in areas such as money transfers and micropayments. It is worth noting that PayPal has also announced plans to launch a “cryptocurrency hub” that will play a big role for conversion between PYUSD’s steiblcoin and other crypto assets. It has been reported online that crypto exchanges Bybit and Huobi have announced plans to list the PayPal USD steiblcoin. However, there were no confirmations about the listing on the exchanges from PayPal.
- Authorities in China’s Sichuan province plan to invest about $34 billion in the development of the meta-universe industry by 2025, according to a draft action plan for the period up to 2025. The authorities also intend to establish at least 15 meta-universe-related industrial parks and support at least 15 leading firms in the sector. In addition, the local government said it will work to optimize blockchain infrastructure, strengthen privacy protection and develop interconnectivity. Despite the fact that Chinese authorities banned all cryptocurrency transactions in September 2021, the country remains optimistic about the development of its own blockchain technology and digital economy. In particular, Chinese tech giants such as Alibaba and Tencent are focusing on developing their own blockchains. Chinese authorities are also working to develop the digital economy and promote innovation, including the development of metavillages. The metavillage industry could reach 250 billion yuan ($34 billion) by 2025, making it one of the most promising sectors in China.
- The founder of the cryptocurrency exchange FTX, Sam Bankman-Fried, has found himself at the center of a scandal over financial fraud and is trying to improve his conditions in prison. The businessman has filed a motion asking to be kept in jail only on weekends so he can work with his lawyers on weekdays. Bankman-Fried is being held on charges of witness interference, and the court said he pressured some of the witnesses. In his motion, the businessman said such a detention regime would help him prepare more effectively for trial. Such a motion is controversial among lawyers and the public, as such requests are rarely understood by the courts. A court hearing on the case is scheduled for the near future.
- SpaceX, an aerospace technology company, has sold $373 million worth of bitcoin assets that were acquired in 2021 and 2022, according to The Wall Street Journal. The company confirmed that it had recorded $373 million worth of bitcoin assets on its balance sheet, but has since sold the crypto asset. The exact amount of bitcoins sold has not been disclosed, but financial reports indicate that SpaceX has spent a significant amount of money on property and equipment in addition to research and development costs.
Recall that in 2021 Tesla, co-founded by Ilon Musk, planned to acquire crypto assets worth $1.5 billion. In the second quarter of 2022, Tesla sold more than 30,000 bitcoins worth $936 million. It is worth noting that Musk continues to address cryptocurrencies in his social media posts and expresses his opinion on various cryptocurrencies, including Dogecoin.
Although companies have sold significant amounts of bitcoin, many tech firms and financial institutions continue to hold crypto assets. Cryptocurrencies continue to attract investor interest despite fluctuations in price. SpaceX has not commented on further plans to use the proceeds from the sale of bitcoins. However, the sale of crypto-assets may be related to the company’s financial needs in connection with the expansion of its production facilities and the development of new technologies.
- The company SpaceX, founded by the famous billionaire Ilon Musk, sold bitcoins worth $373 million, the Wall Street Journal reports with reference to financial documents. It is not specified exactly what volumes of crypto-assets were sold, but according to the documents, at the time of their compilation in 2021 and 2022, SpaceX had assets in bitcoins for $373 million. This happened after Ilon Musk announced in early 2021 that Tesla had purchased bitcoins worth $1.5 billion. The record growth in the value of bitcoin, which was seen at the time, was attributed to these statements by Musk. However, since then, the price of bitcoin has dropped significantly, and the sale of SpaceX’s crypto assets could have been one of the reasons for its fall. But, as experts note, this is only one version, and the drop in the bitcoin price could be due to other factors as well.
- The Central Bank of Kazakhstan presented the project of digital tenge. The introduction of digital currency will ensure the future development of Kazakhstan’s national payment system due to its unique technological characteristics, in particular, payment without internet. The digital tenge will be the third form of Kazakhstan’s national currency and will be as legal tender as other forms. Its price will be equal to the tenge exchange rate and it can be exchanged for cash or non-cash money. However, Chairman of the Center for Development of Payment and Financial Technologies of the National Bank Binur Zhalenov said that the digital currency of Kazakhstan will not replace cash or non-cash money, it will be used in parallel. Last year, Kazakh leader Kasym-Jomart Tokayev said that the circulation of cryptocurrencies in Kazakhstan may be legalized in the near future, provided that the conversion scheme will prove itself in the pilot project.
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