Today in crypto, Former UK Prime Minister Boris Johnson says Bitcoin is a scam, USDC’s market cap is approaching a record $80 billion amid turmoil in Dubai’s real estate market. Meanwhile, a US federal appeals court knocks back Custodia Bank’s request to review the Federal Reserve’s authority in granting master accounts.
Bitcoiners criticize former UK PM Boris Johnson after he said BTC is a scam
Former United Kingdom Prime Minister Boris Johnson called Bitcoin a “Ponzi scheme” on Friday, drawing a torrent of online backlash from the Bitcoin (BTC) community and crypto industry executives.
Johnson wrote an opinion article in the Daily Mail recounting the story of a “friend” who had given someone they met at a bar 600 British pounds, or about $661, on the promise that the money would be doubled.
This friend then spent the next three and a half years paying “additional” fees to the promoter of this scheme, but was never able to withdraw any money, despite sinking over 20,000 British pounds into it.
“Bitcoin is not a Ponzi scheme. A Ponzi requires a central operator promising returns and paying early investors with funds from later ones,” Strategy co-founder Michael Saylor said in response.
The rest of the comments in response to the article were overwhelmingly negative, with some, like Pierre Rochard, CEO of The Bitcoin Bond Company, a BTC-backed financial product company, mocking Johnson by calling the UK economy a Ponzi Scheme.
USDC market cap nears record $80B amid ‘capital flight’ in UAE: Analyst
The market capitalization of the USDC stablecoin is approaching a record high near $80 billion as demand surges in the Middle East, with one analyst linking the spike to capital flight from the United Arab Emirates.
According to data from CoinMarketCap, USDC (USDC)’s circulating supply has risen to roughly $79.2 billion, marking a new all-time high for the dollar-pegged stablecoin. The stablecoin’s market cap previously hit a high of below $79 billion in December last year.
The increase comes after supply expanded by billions of dollars in recent weeks. The stablecoin’s market cap stood at just over $70 billion in early February and at $75 billion earlier this month.
Self-proclaimed Dubai-based analyst Rami Al-Hashimi claimed the surge reflects growing demand from investors seeking to move funds out of traditional markets. In a Friday post on X, Al-Hashimi said over-the-counter (OTC) desks in Dubai have struggled to meet demand for the stablecoin.
Federal court ends Custodia Bank's legal bid for a master account
A US federal court has rejected Custodia Bank’s final attempt to challenge the Federal Reserve’s authority over granting master accounts — effectively ending the crypto-focused bank’s five-year-long battle for direct access to the central bank’s payment system.
The US Court of Appeals for the Tenth Circuit said in a filing on Friday that it wouldn’t hear Custodia's final appeal on that point in a 7-3 vote.
Custodia first applied for a master account in October 2020, which allows financial institutions to hold reserves directly at the Federal Reserve and access its payment rails, enabling them to settle transactions without relying on intermediary banks.
After the Fed rejected its master account application, Custodia turned to the courts, arguing the Monetary Control Act entitles state-chartered banks to access Fed services and therefore a master account.
However, the multiple courts have now ruled that the Fed retains discretion over whether to grant master accounts.
Custodia’s blow comes as Kraken became the first crypto platform to receive a master account from the Federal Reserve Bank of Kansas City on March 4.
