The crypto meltdown continues. Further waves of reckoning swept through the crypto industry, with Coinbase saying it would cut almost a fifth of its staff. The destruction in crypto markets has been broad and deep, with roughly $2 trillion of value having been erased across numerous cryptocurrencies since November 2021.
Anne Boden, CEO of the Goldman Sachs-backed UK FinTech Starling Bank has doubled down on criticisms of crypto, calling digital currencies a threat to the safety of payment infrastructure. Cryptocurrencies are a threat to the safety of our payment schemes and very dangerous, she said at the Money 20/20 fintech conference in Amsterdam. The Neobank Starling Bank offers fee-free checking accounts and loans.
Nasdaq-listed US Software firm MicroStrategy, like Elon Musk's Tesla, is one of the major Bitcoin players within the Bitcoin segment. The company has a market cap of some $2.7 billion. The company has purchased over 129,000 bitcoins since August 2020. The company, co-founded by CEO Michael Saylor in 1989, first bought the cryptocurrency by converting $250 million of its cash holdings into 21,454 BTC. Since then, it has converted proceeds from the software business and €2.4 billion in debts to acquire Bitcoins.
The collapse of the TerraUSD (UST) stablecoin, whose total value swelled to $18 billion before collapsing earlier in early May 2022. Crypto investors lost billions. Japan became one of the first major jurisdictions to introduce a legal framework around stablecoins. Japan’s parliament passed a bill, defining them essentially as digital money, FinTelegram reports. Thus, stablecoins can only be issued by regulated entities and must be linked to the yen or another legal tender and guarantee holders the right to redeem them at face value.
The crash of the Terra stable coin is not destabilizing the traditional FIAT financial system, says BaFin chief Mark Branson. However, this could change...
