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Cryptocurrency poses threat to payment network security: Starling CEO

Anne Boden, the founder and CEO of Starling, a London based digital bank, has increased his anti-crypto stance arguing that digital currencies pose a threat to payment network security. Starling is a Goldman Sachs-backed digital challenger bank founded in 2014 located in the United Kingdom.

Anne Boden was discussing her anti-crypto stance in the Money 20/20 fintech conference in Amsterdam on June 7. While making her stance she informed that cryptocurrencies are quite dangerous. She further added:

“This is a threat to the safety of our payment schemes worldwide.”

In recent times, the crypto world has made a huge popularity and is currently being adopted as an accepted method of payment in many famous corporations. Major payment giants such as Mastercard and Visa have also opened their networks to cryptocurrencies. In another development a global payment company PayPal has allowed clients to trade bitcoin and other cryptocurrencies on its network. However, with the integration of crypto with the financial system, regulators are worried that the financial system would get even more tied with the volatile world of cryptocurrencies.

Collapse of TerraUSD

The value of all cryptocurrencies has plunged by about $400 billion in the previous month, as investors were taken aback by the collapse of TerraUSD. This well-known stablecoin was always meant to be worth $1. Boden is not the first to warn about the risks associated with the cryptocurrency sector. She has previously expressed worry about clients being victims of fraud as a consequence of their crypto investments. Starling’s CEO warned and said the followings:

“Customers are being deceived. We spend significantly more time safeguarding clients from scammers than we do promoting cryptocurrency.”

The Financial Conduct Authority of the United Kingdom published the results of an assessment in April, alleging that online-only challenger banks aren’t doing much to combat financial fraud. Although the commission did not identify any corporations, Starling admitted that it was one of the firms whose networks were inspected. According to a spokeswoman, the corporation has been “extremely vocal” in its fight against fraud.

Starling Bank crypto plans

When asked if Starling will ever provide cryptocurrencies, Boden said it is doubtful in the next several years, citing the fact that cryptocurrency companies still have a far way to go in terms of anti-money laundering standards.

About Starling Bank

Starling specialises in current and business account products and offers fee-free checking accounts and lending through an app. Among the firm’s investors are Goldman Sachs and Fidelity Investments. The net worth of the company is around £2.5 billion ($3.1 billion).

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