Welcome to This Week in Crypto, where we cover the top trending headlines in the cryptocurrency industry. The world of crypto news moves fast, and we’re here to bring it to you for your weekly digest. This week, we’re looking at Japan and Russia\’s plans for CBDCs, the SEC charging Terraform Labs, and Elon Musk\’s continued influence on the meme coin market. Enjoy this week’s top stories!
Russia and Japan Plan to Pilot CBDCs Starting in April
Russia and Japan have both announced that they will be piloting their own respective Central Bank Digital Currencies (CBDCs) starting in April. Russia’s version of the digital ruble will be tested in conjunction with 13 local banks, according to first deputy governor Olga Skorobogatova. Users will be able to make individual transactions and make trade and service purchases as well. The results of the pilot will be used to shape the future of the Russian CBDC program.
The Bank of Japan’s executive director Shinichi Uchida announced that Japan would be piloting its “digital yen” in April of this year. However, it will not be used for retail transactions, only simulated ones. In the months after the pilot, the central bank will collaborate with the private sector in a CBDC forum. Japan currently bans the use of foreign stablecoins in their economic ecosystem, but may allow them once approved in the coming year.
SEC Charges Terraform Labs Founder Do Kwon for Securities Fraud
The United States Securities and Exchange Commission charged Terraform Labs and its founder, Do Kwon, with securities fraud in reference to the collapse of Terra USD and its LUNA token. SEC chair Gary Gensler said “We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” The SEC’s investigation began in June 2022 after the $60 billion collapse of the Terra stablecoin, which set into action a domino effect of various bankruptcies in the crypto industry. Investigators also allege that Kwon misled investors when he said that newly released Terra products would increase in price so they could take profits. Overall it seems like a messy situation, but hopefully the investigation can bring clarity to the internal failures of Terraform Labs.
Twitter CEO Elon Musk Sends DOGE, SHIB, and FLOKI Prices Soaring
Elon Musk is back at it again tweeting about his favorite dog-themed cryptocurrencies. The Twitter CEO posted a picture of his dog, Floki, posing as the new CEO of Twitter last Tuesday. Of course, the crypto community loved it and the prices of DOGE, SHIB, and FLOKI (a crypto token named after Musk’s dog) rose 5% to 40%! Musk’s tweets continue to show his incredible influence on the meme coin markets. Do you think Musk is aware of the power he has in the crypto markets?