Cryptocurrencies are accused of being a danger to payment systems

The cryptocurrency is accused of endangering the infrastructure of payment systems. For the founder of a new British bank, the cryptocurrency sector is dangerous and companies in the sector still lack regulation.

Credits: Piqsels

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

“Many crypto wallets are linked 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 at the beginning of 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 founder of Starling comes as many actors of traditional finance they opened their networks to cryptocurrencies. This is the case with Mastercard, which supports some cryptocurrencies, and Visa, which authorizes credit card payments with cryptocurrencies.

The two main managers have progressively opened up to the world of digital assets on the Blockchain. Mastercard has also entered into numerous partnerships with leading companies in the cryptocurrency industry to overcome the imminent demise 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 payment in Bitcoin and three other cryptocurrencies in the US and the UK. 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 are being scammed. We spend much more time protecting customers from scammers than trying to promote cryptocurrencies. ” assures Anne Boden, very upset by the cryptocurrency industry. You also argue that companies in the ecosystem have done this much to recover in terms of control and fight against money laundering.

These last years, many legislative frameworks they are still being put in place to oversee the development of cryptographic services. In France, PSAN approval and MFA visa have emerged in particular to establish a clear picture. Similar initiatives are being developed in most countries of the world.

“At the moment, too many transactions entering cryptocurrency exchanges are fraudulent and until the industry puts in place more and more controls … I think we should all beware of this space.”, had already warned the leader last April. This criticism comes when the cryptocurrency market has been in the red for several weeks. After at the crash of the FSO, the Earth’s algorithmic stablecoin, the whole market collapsed. Bitcoin is hovering around $ 30,000, a far cry from its all-time high of last November.

Note that one of the main investors supporting Starling Bank is none other than Goldman Sachs. The US bank was one of the first to enter the cryptocurrency arena. Last year, her has relaunched its trading service of cryptocurrencies to exploit investor enthusiasm. The investment bank also believes that cryptocurrencies represent an entirely new asset class.

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