Concerns Over Stablecoins and Ziglu's Financial Woes

In today's crypto news, Bank of England (BOE) governor Andrew Bailey raised alarms about the risks posed by stablecoins, suggesting that the BOE should consider tokenized deposits instead. He warned that stablecoins could undermine the financial system and lead to a loss of government control over fiat currencies. Bailey also expressed skepticism about the UK adopting a central bank digital currency (CBDC) like the digital pound, echoing concerns from EU officials about the potential destabilizing effects of US dollar stablecoins. Meanwhile, thousands of Ziglu customers face potential losses after a £2 million ($2.7 million) shortfall was revealed at the British crypto fintech, which entered special administration last week. Ziglu, which had suspended withdrawals in May, attracted around 20,000 customers with its high-yield “Boost” product, but customer funds were not adequately protected. Despite Bitcoin reaching new all-time highs, retail interest remains low, although demand for Bitcoin exchange-traded funds (ETFs) has surged, with record inflows recently. Read more AI-generated news on: https://app.chaingpt.org/news