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Crypto threatens the safety of global payment systems, fintech boss warns

Crypto threatens the safety of global payment systems, fintech boss warns

June 9, 2022: -The boss of Goldman Sachs-backed digital bank Starling has doubled down on crypto criticism, calling digital currencies threatful to the safety of payment infrastructure.

“It is hazardous,” Anne Boden, who founded Starling in 2014, warned at Amsterdam’s Money 20/20 fintech conference. Based in Britain, Starling had offered fee-free checking accounts and loans through an app. The firm was previous privately valued at £2.5 billion and counts the likes of Goldman and Fidelity as investors.

“Many wallets are connected directly to payment schemes,” Biden said. “This can threaten the safety of our payment schemes worldwide,” Biden added.

Regulators are concerned regarding the financial system becoming more entwined with the volatile world

 of crypto. Major payment players embrace cryptocurrencies. Credit card giants Mastercard and Visa spread their networks to digital assets like PayPal lets users trade bitcoin and other cryptocurrencies.

Almost $400 billion has been obliterated from the combined value of all cryptocurrencies in the previous month as the collapse of terraUSD rattled investors. This popular stable coin was always meant to be worth $1.

It’s not the initial time Boden has warned about the dangers of the crypto space. She has sounded the alarm about consumers falling victim to fraud due to crypto investments.

“Customers are scammed,” the Starling chief said on Tuesday. “We’re spending far more of the time to protect customers from the scammers than we are trying to promote crypto,” he added.

Asked if Starling would ever offer crypto, Boden said it was unlikely to happen in the upcoming couple of years, which adds that crypto companies have a lot to catch up regarding anti-money laundering controls.

In April, the Financial Conduct Authority of the U.K. published a review finding that online-only challenger banks are not doing enough to tackle financial crime.

The regulator did not name any names, but Starling confirmed it was among the firms whose systems were scrutinized. A representative said the company has been “extremely vocal” about fighting fraud.

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Crypto threatens the safety of global payment systems, fintech boss warns