Bank of England Deputy Governor Jon Cunliffe recently said in a speech that crypto volatility and losses require regulation, according to a Bank of England publication on Tuesday, July 12.
Due to the collapse of various crypto assets and the loss of 70% in bitcoin’s value, Cunliffe said regulators should continue to work to find a solution. He said regulation should be “built on the iron principle of ‘same risk, same regulatory outcome’.”
Separately, the Catawba General Council voted to create a new digital special economic zone called Green Earth Zone (GEZ), according to a press release.
The GEZ began about three years ago under the Catawba Corporations, the economic development arm of the Catawba Indian Nation.
According to Ronnie Beck, CEO of Catawba Corporations, special economic zones can contribute to economic development, which will provide more opportunities for the Catawba Nation.
Additionally, while Celsius Network’s customer withdrawal freeze has been in effect since June 12, the struggling crypto lender has still paid over $900 million in the same period to decentralized finance platforms (DeFi ) so far, Bloomberg wrote on Wednesday, July 13.
Celsius has refunded DeFi platforms Aave, Compound and Maker. The refunds could lead to discussions about how struggling crypto platforms should repay creditors, whether real people or platforms governed by computer code called smart contracts.
In other crypto news, South Africa plans to introduce regulation for crypto, according to a statement from Kuben Naidoo, Deputy Governor of the South African Reserve Bank (SARB), CoinDesk reported on Wednesday. .
Naidoo said the bank’s view has changed and now sees crypto as a financial asset.
“There has been a lot of money flowing in, and there is a need to regulate it and mainstream it,” he said, according to the report.
Finally, The Street reported on Wednesday that inflation — moving faster than in the past four decades — could have a crippling effect on cryptocurrency.
Edward Moya, senior market analyst for the Americas at Oanda, said increased inflation could be a problem for the crypto as a Federal Reserve tightening looms. With the risky elements of things like bitcoin, that could be a problem.
“Bitcoin needs risk appetite to stabilize and that won’t happen if financial markets continue to price in Fed tightening,” Moya said.