Cryptocurrency is accused of endangering the infrastructure of payment systems. For the founder of a British neobank, the cryptocurrency sector is dangerous and companies in the industry still lack regulation.
Anne Boden, founder of digital bank Starling, believes the cryptocurrency industry represents a huge danger for payment systems in the world. At a conference dedicated to fintech in Amsterdam, she notably assured that crypto “it’s very dangerous”.
“Many crypto wallets are connected directly to payment systems. This is a threat to the security of our payment systems around the world”, says Anne Boden. In this context, its neobank will not offer offers based on cryptocurrencies.
On the same theme: this investor assures that the price of Bitcoin will reach 250,000 dollars in early 2023
Too many scams in the world of cryptocurrencies according to Anne Boden
“The industry as a whole really needs to be aware of the dangers of people using bitcoin and cryptocurrencies to process fraudulent payments”continues Anne Boden, convinced that the crypto ecosystem has more disadvantages than advantages.
The warning from the Starling founder comes as many players in traditional finance opened their networks to cryptocurrencies. This is the case of Mastercard, which supports certain cryptocurrencies, and Visa, which authorizes payments by credit card with cryptocurrencies.
The two main managers have gradually opened up to the world of digital assets on the Blockchain. Mastercard has even forged numerous partnerships with leading firms in the crypto industry to overcome the imminent disappearance of the SWIFT network. Michael Miebach, CEO of Mastercard, believes that the interbank payment network will no longer be there in 5 years.
For its part, PayPal allows you to pay in Bitcoin and three other cryptocurrencies in the United States and the United Kingdom. Recently, PayPal has also made it possible to transfer cryptocurrencies to external wallets. The online payment service visibly places its trust in the blockchain infrastructure.
A lack of regulation
“Customers get scammed. We spend a lot more time protecting customers from scammers than trying to promote crypto,” assures Anne Boden, very upset against the crypto-asset industry. She also argues that companies in the ecosystem have a lot of catching up to do in terms of control and fight against money laundering.
These last years, many legislative frameworks have yet been put in place to oversee the development of crypto services. In France, the PSAN approval and the AMF visa have emerged in particular to establish a clear framework. Similar initiatives are under development in most countries around the world.
“At the moment, too many transactions that enter crypto exchanges are fraudulent, and until the industry puts more and more controls in place…I think we should all beware of this space”, had already warned the leader last April. This criticism comes as the cryptocurrency market has been in the red for several weeks. After at the crash of the UST, Terra’s algorithmic stablecoin, the whole market crashed. Bitcoin is hovering around $30,000, far from its all-time high from last November.
Note that one of the main investors supporting Starling Bank is none other than Goldman Sachs. The American bank was one of the first to jump into the cryptocurrency arena. Last year, she relaunched its trading service of cryptocurrencies to take advantage of the enthusiasm of investors. The investment bank also believes that crypto represents a whole new class of assets.
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Crypto is accused of being a danger to payment systems
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