Crypto yesterday delivered some fireworks in the space, from fiery debates to surging stablecoins and courtroom drama.
Boris Johnson Slams Bitcoin as a Ponzi—Community Fires Back Hard
Crypto yesterday saw former UK Prime Minister Boris Johnson stir up a storm by branding Bitcoin a massive “Ponzi scheme” in his latest Daily Mail piece. He shared a wild story about a friend who got suckered at a bar, handing over 600 pounds with promises of quick doubling, only to pour in over 20,000 pounds in extra “fees” over three and a half years without ever cashing out.
Johnson used that tale to basically call the whole thing a house of cards waiting to collapse.
The Bitcoin crowd didn’t hold back. The crypto space lit up with pushback, starting with MicroStrategy co-founder Michael Saylor dropping a sharp reality check: “Bitcoin is not a Ponzi scheme. A Ponzi requires a central operator promising returns and paying early investors with funds from later ones. ”
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Others jumped in too. Pierre Rochard, who runs a Bitcoin-backed financial outfit, flipped the script and joked that maybe the UK economy itself looks more like a Ponzi these days.
Stablecoins brought big numbers on the USDC front in crypto yesterday
Shifting gears to stablecoins, crypto yesterday brought big numbers on the USDC front. The market cap climbed close to a record $80 billion, hitting roughly $79.2 billion according to CoinMarketCap data.
That’s a fresh peak for the dollar-pegged token, topping its previous high from late last year. The surge kicked off after billions were added in recent weeks, as it was just over $70 billion back in early February and $75 billion not long ago.
A Dubai-based analyst, Rami Al-Hashimi, tied the jump directly to what’s happening in the region. He pointed to heavy demand on OTC desks in Dubai, suggesting investors are rushing into USDC amid capital flight concerns from the UAE.
Crypto yesterday showed once again why stablecoins like USDC are becoming go-to tools when people want to park or move value quickly and safely.
Federal court ends Custodia Bank’s legal fight
And in regulatory news, crypto yesterday marked the end of a long fight for Custodia Bank. A US federal appeals court shut down the crypto-focused bank’s last push for a master account at the Federal Reserve.
In a 7-3 vote, the Tenth Circuit refused to rehear the case, confirming the Fed’s discretion in granting those accounts. Custodia had been battling since 2020 for direct access to the central bank’s payment system without middlemen. Despite arguing state-chartered banks deserve it under the Monetary Control Act, the courts sided with the Fed’s authority.
Ironically, this came right after Kraken scored a win by becoming the first crypto platform to snag a master account from the Kansas City Fed earlier this month.
Crypto yesterday wrapped up with a reminder that while some doors slam shut, others are cracking open in the evolving relationship between traditional finance and the blockchain world.
