Crypto is accused of being a threat to payment systems

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 are still unregulated.

Credits: Piqsels

Anne Boden, founder of digital bank Starling, believes the cryptocurrency industry represents: a huge threat to payment systems in the world. In particular, at a conference dedicated to fintech in Amsterdam, she assured that crypto “it’s very dangerous”

“Many crypto wallets are directly connected 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 any offers based on cryptocurrencies.

On the same theme, this investor assures that the price of Bitcoin will reach $250,000 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 Starling founder’s warning comes as: many players in traditional finance opened their networks to cryptocurrencies. This is the case for Mastercard, which supports certain cryptocurrencies, and Visa, which authorizes credit card payments with cryptocurrencies.

The two main executives have gradually opened up to the world of digital assets on the Blockchain. Mastercard has even forged numerous partnerships with leading crypto industry companies to imminent disappearance of the SWIFT network† Michael Miebach, CEO of Mastercard, believes the interbank payment network will be gone 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 puts its trust in the blockchain infrastructure.

A lack of regulation

Customers are being scammed. We spend a lot more time protecting customers from scammers than promoting crypto.” Anne Boden assures, very angry with the crypto asset industry. She also argues that companies in the ecosystem a lot to catch up on in terms of control and fight against money laundering.

These last years, many legal frameworks have not yet been introduced to oversee the development of crypto services. In France, in particular, the PSAN approval and the AMF visa have emerged to create a clear framework. Similar initiatives are under development in most countries around the world.

“Right now, too many transactions coming into crypto exchanges are fraudulent, and until the industry puts in more and more controls…I think we should all be wary of this space”, the leader had already warned last April. This criticism comes because the cryptocurrency market has been in the red for several weeks. After at the crash of the UST, Terra’s algorithmic stablecoin, the entire market collapsed. Bitcoin is hovering around $30,000, far from its all-time high of last November.

Note that one of the main investors backing Starling Bank is none other than: Goldman Sachs† The US bank was one of the first to enter the cryptocurrency arena. Last year she has has relaunched its trading service of cryptocurrencies to capitalize on investor enthusiasm. The investment bank also believes that crypto represents an entirely new asset class.

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