Global Payments Industry At Risk Due to Cryptocurrencies, Says FinTech Boss
According to the boss of New York based investment banking company, Goldman Sachs, Cryptocurrencies impose a threat to the global payments network and security
On Tuesday, At the Money 20/20 FinTech Conference, held in Amsterdam the boss of the digital bank Starling Anne Boden stated that cryptocurrencies are dangerous and impose a threat to the global payment industry.
The digital bank Starling is backed up by the famous investment group Goldman Sachs. It is based in Britain and was founded in 2014, Starling deals in current and business account products. It offers a free checkup of accounts and loans through an application. The organization was previously held at a value of £2.5 billion ($3.1 billion) with investors like Goldman Sachs and Fidelity.
According to Anne, there are a lot of crypto wallets being attached directly to the network of payment schemes, this involvement increases the risk of safety failures for the payment systems around the world.
As of the major development, authorities are embracing blockchain networks and cryptocurrencies. Famous credit card service providers such as MasterCard and Visa have also opened their channels to digital currencies. Paypal has also allowed the trade of major coins such as Bitcoin and Ethereum upon their network. The regulators of the payment platforms are more concerned due to the volatile nature of digital currencies.
One of the major shocks for the investors was the collapse of the TerraLuna which was considered to be a very stable coin that is now under $1.
Anne Boden has warned multiple times of the dangers that crypto poses to the mainstream payments systems. She has previously mentioned the scams and frauds that people face when investing in the network of cryptocurrencies.
The founder of Starling said: “We’re spending far more of our time protecting customers from the scammers than we are trying to promote crypto.”
When asked questions about Starling accepting crypto payments, Boden stated that it is not likely to happen in the next two to three years as the crypto firms are a lot far behind when it comes to the prevention of money laundering.
Suggested Read: Crypto Providers at Risk of Money Laundering & Terror Financing, Says FMA