The CEO of Starling Bank, Anne Boden, has issued a stern warning about the cryptocurrency sector. Boden’s remarks come when the cryptocurrency market is witnessing massive growth, and crypto apps are getting a global reach.
Starling Bank is a fintech company backed by one of the largest banking institutions in the US, Goldman Sachs. In her recent remarks, Boden said that cryptocurrencies threatened the safety of the payments system.
Starling Bank CEO attacks crypto
Anne Boden founded Starling Bank in 2014. While speaking at a panel during Amsterdam’s Money 20/20 fintech conference, Boden said that the crypto market was “very dangerous.”
Your capital is at risk.
Starling Bank is a financial institution that is based in Britain. The firm offers access to checking accounts that do not charge any fees, and it provides access to loans through the application. The firm’s last valuation was £2.5 billion, valued at $3.1 billion, and some of the investors in this company include Goldman Sachs and Fidelity.
“A lot of [crypto] wallets are being connected directly to payment schemes. This is a threat to the safety of our payment schemes around the world,” Boden said. This is not the first time that the executive has warned about the dangers of the crypto sector. She had previously said that there was a massive risk of consumers being scammed through crypto initiatives.
“Customers are being scammed. We’re spending far more of our time protecting customers from the scammers than we are trying to promote crypto,” Boden said.
Fintech companies adopt crypto
Boden’s remarks are different from the action that has been taken by fintechs o embrace cryptocurrencies as a sector that has fostered innovation. Some of the leading fintech companies have taken the initiative to embrace cryptocurrencies. Some of the largest credit card giant companies, Mastercard and Visa, have announced they will support digital assets.
Another fintech that is also showing support for cryptocurrencies is PayPal. The company allows users to buy Bitcoin and a wide range of other cryptocurrencies. Recently, it announced that it would extend its crypto services by allowing users to link to their external cryptocurrency wallets.
Despite the increased interest of fintechs in the crypto sector, regulators have shown concern that the sector could become entangled with the volatile nature of the cryptocurrency market. The prices of digital assets tend to rise and fall so fast than any other asset class.
Over the past month, around $400 billion worth of cryptocurrencies have been erased from the global crypto market cap. In early May, the losses were triggered when the Terra USD (UST) stablecoin crashed. The stablecoin was meant to have a value of $1, but it plunged to below a cent, and it caused massive losses for investors.
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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Read More:Starling Bank CEO Says Crypto is Very Dangerous
