Today, in Crypto, the Bank of England governor faces potential losses after a $2.7 million shortfall in Ziglu, thousands of savers face potential losses after thousands of savers face potential losses and British crypto fintechs enter special management, and Bitcoin retail interest is behind despite assets reaching new history highs.
Bank of England Governor warns Stubcoin
Bank of England (BOE) Governor Andrew Bailey issued a warning on Sunday against stupid banks, saying BOE should instead adopt tokenized deposits.
Bailey said the stubcoin could threaten the structure of the financial system and lead the government to lose control of their fiat currency.
BOE officials added that the UK Central Bank should not join the European Union to promote central bank digital currency (CBDC) or issue “digital pounds.”
Bailey’s concerns have been expressed by other EU officials who argue that US dollar stubcoins could overturn the financial system and could cause further damage to the euro in the global currency markets.
Collapsed crypto company Ziglu faces a $2.7 million deficit in special management
Thousands of savers are faced with a harsh prospect of losing their investment after administrators discovering a shortfall of £2 million ($2.7 million) at Ziglu, the UK cryptocurrency fintech that collapsed earlier this year.
The company, which stopped its withdrawal in May, took over as special management last week amid concerns over financial management, according to a report Sunday in The Telegraph.
Ziglu attracted around 20,000 customers with a high profit margin promise, especially through its “boost” product offering yields of up to 6%. Boost gained popularity due to its higher revenues as it began in 2021 during a low interest rate period.
However, the product was not protected and not surrounded by a ring fence, allowing the company to use its customer funds for daily operations and lending activities. Following an intervention by the Financial Conduct Authority (FCA) in May, the withdrawal was frozen and savers were locked up from weeks of money.
BTC taps high, so Bitcoin retail interest “Largely found nothing”
According to researchers at Crypto, Bitcoin has hit record highs this week in a row, but retail investors seem reluctant to jump into the market.
However, demand for spot Bitcoin exchange funds (ETFs) has skyrocketed, with daily influxes of over $1 billion on Thursday and Friday, marking the first time this was the second consecutive day.
“Bitcoin is at its highest ever high, but there’s almost no retail anywhere,” Andre Dragosch said in a post in X on Friday, Bitwise’s research head, noting that despite this week’s highest ever high, there’s no retailing interest in Google’s search for “Bitcoin.”
