Weekly crypto roundup: Terra 2.0 is now live, following luna meltdown

In today’s edition of Bitmama’s weekly crypto news roundup, we cover interesting developments in the cryptocurrency industry. Top picks – Terra launched a new blockchain with a new Luna token, Central African Republic moves ahead with Its crypto hub initiative despite World Bank’s concerns, Thailand exempts crypto transfers from VAT until end of 2023, Elon Musk says Spacex will soon accept Dogecoin for merchandise

Let’s get started.

Terra 2.0 is now live, following luna meltdown

On Saturday, Terra 2.0 officially went live, less than a month after two linked cryptocurrencies called terraUSD and luna imploded. The prices of both tokens went down to a few cents or less in under a week, and people who bought the digital currencies lost almost all of their investment. 

A community of luna and terra holders voted to make a new blockchain earlier this week. The vote passed, and the @terra_money Twitter account said Friday that Block 1 of the new blockchain had been produced. The new blockchain is called terra, while the original one will be called terra classic. Both luna classic and terraUSD are still trading for almost nothing, with luna classic worth well under a penny. Terra is also holding an “airdrop” giveaway in which luna and terraUSD holders could receive the new luna cryptocurrency to incentivize the new blockchain.

 Central African Republic moves ahead with Its crypto hub initiative despite World Bank’s concerns

Central African Republic (CAR) President Faustin-Archange Touadéra is readying to launch a new crypto project, dubbed Sango – the first crypto initiative that is designed to strengthen the country’s image as an emerging African crypto hub. 

“For us, formal economy is no longer an option,” the president said in a statement released on his official Twitter account. He further explained that, the country: 

“will enter a new phase through the launch of project Sango  designed to transform our country and open a new path towards a bright future”.

In the statement, Touadéra praised bitcoin (BTC) and the blockchain technology, saying that they have “the potential to remodel the world of finance by making it more certain, more transparent, more supply-driven, more decentralized, and more reliable.” 

He also made reference to his promulgation of Law no 22,004 from April 22, 2022, which recognizes BTC as “the official digital currency” of his country.

The latest development comes weeks after the CAR confirmed reports that it adopted bitcoin as legal tender – becoming only the second country in the world (after El Salvador) and the first African nation to do so.

The president  did not disclose the details of Sango, but claimed that the project will “go beyond politics and administration” by introducing “a new mode of economic governance and a vector for alternative strategic digital investments”.

The World Bank, on the other hand,  has shown concern about how the lack of transparency inherent to the CAR’s economy could impact financial inclusion in a country that relies on international donors for more than 50% of its budget, per Bloomberg.

In its analysis of the country’s political and economic situation, the World Bank calls it “one of the poorest and most fragile countries in the world” despite its substantial natural resources.

 Thailand exempts crypto transfers from VAT until end of 2023

Investors moving cryptocurrencies and digital tokens through exchanges in Thailand will benefit from a 7% VAT exemption on such transactions. A decree  published in the Royal Gazette on Tuesday enforced the tax break retroactively from April 1, 2022. It will be in place until Dec. 31, 2023, local media reported.

The measure, which was approved by the government in March, concerns trading platforms registered with the Ministry of Finance. The decision has now become part of Thai law as it enters into force on the day following its publication in the official journal.

According to the document, the main purpose of the tax relief is to promote cryptocurrency trade on authorized exchanges, allowing crypto transactions to be regulated and carried out under the supervision of relevant departments like the Securities and Exchange Commission (SEC).

Thailand’s Finance Minister Arkom Termpittayapaisit is convinced that the relaxed tax rules will make cryptocurrency exchange in the country more reliable and stable. 

Director-General of the Revenue Department Ekniti Nititthanprapas added that crypto trading will be more convenient for investors who will enjoy fair tax treatment and safe transactions while Thailand improves its image in the global digital space.

Elon Musk says Spacex will soon accept Dogecoin for merchandise

Dogecoin got a little boost Friday when Tesla CEO Elon Musk announced via Twitter that Spacex will soon accept the meme cryptocurrency for merchandise. The Spacex boss tweeted: “Tesla merch can be bought with DOGE, soon Spacex merch too.”

In addition, Musk said that Spacex’s Starlink subscriptions may “one day” be paid with dogecoin. Starlink provides “High-speed, low-latency broadband internet in remote and rural locations across the globe,” its website describes.

Following Musk’s tweet about Spacex accepting dogecoin, the price of the meme cryptocurrency spiked. At the time of his tweet, DOGE was trading at $0.078399 per coin. It quickly rose more than 8% to $0.084927. However, the meme coin soon lost most of its gains and is currently trading at $0.081469.

Tesla began accepting dogecoin payments in January for some merchandise, and the electric car company currently accepts no other cryptocurrencies. The company used to accept bitcoin for products but stopped due to environmental concerns. Musk said in June last year that Tesla will resume accepting BTC when miners can confirm 50% clean energy usage. However, he has yet to revisit the subject.

Musk has long been a supporter of dogecoin. He is known in the crypto community as the Dogefather.. In April, Tesla’s balance sheet shows $1.26 billion in digital assets. The Spacex chief said in May that dogecoin has potential as a currency while bitcoin is better suited as a store of value.

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