Starling Bank Chief Attacks Cryptocurrencies Despite Fintech’s “Crypto-Friendly” Status

Anne Boden is more than skeptical of cryptocurrencies, as she criticizes their use around the world. The CEO of the Goldman Sachs-backed digital bank has gone head-on against cryptocurrencies, warning users to refrain from digital assets.

Founded in 2014 by Anne Boden, Starling bank is a digital bank that provides free loans and financial services via a mobile app. It is based in London, UK, and is supported by major legal entities such as Fidelity and Goldman. In its latest valuation, Starling was worth around 2.5 billion pounds (around 3.1 billion dollars).

Related reading | Bitcoin ETP Buck Crypto Winter Trend, boasts the new ATH

Anne explained that many wallets are directly linked to payment schemes, posing a security risk around the world. But unfortunately, she looks like one of the blockchain security reports I couldn’t impress her.

Major legal entities are adopting cryptocurrencies

Regardless of the growing criticism near and far, digital payment has been adopted as a payment option by institutional actors.

These include debit / credit card leaders like Visa and Mastercard, which have recently accepted cryptocurrency payment options on their platforms. Additionally, PayPal has also rolled out its services to accept digital asset trading. So traditional institutions are now service-enabled to offer their users access to digital payments.

Starling Bank boss attacks cryptocurrencies despite the state
Cryptocurrency Market Drops 3% Today | Source: Crypto Total Market Cap on TradingView.com

On the other hand, financial watchdogs are concerned about the rampant interconnection between their traditional financial platforms and digital assets, which they view as speculative and highly volatile.

The performance of the DeFi market

After the sudden collapse of the Terra blockchain, the entire DeFi (decentralized finance) market has come under enormous selling pressure. However, the bear market for cryptocurrencies was already in play when the Terra blockchain, its UST stablecoin, and the LUNA token began to plummet into thin air.

READ  Another brutal week for cryptocurrency and cryptocurrency companies

As a result of the crash, the entire defi market has seen a decline of around $ 400 billion in the past month. Furthermore, Bitcoin, the world’s leading cryptocurrency, and altcoins followed a strong downward trend and traded below their previous prices.

Anne Boden warns against cryptocurrencies

Anne Boden is one of the people opposed to use cases and has stood firm with her beliefs. Boden previously warned heavily about the threats digital assets pose to users around the world, saying she opens customers to a more significant chance of investing in fraud and scams.

Boden further underlined that digital scams are on the rise. He believes the process of protecting customers from fraudulent investments is more tedious than promoting digital assets.

Related reading | Cardano’s founder says the Ethereum merger won’t come until 2023

In his response to the possibility of the Starling bank providing cryptocurrency services, Boden said the possibilities are slim in the coming years. Boden’s main concern with digital assets remains money laundering and scams.

Featured image from Pexels, chart from TradingView.com

Tinggalkan komentar