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Cryptocurrencies threaten the safety of the global payment system

Boden calls cryptocurrencies a threat to the security of the payment infrastructure. “It’s very dangerous,” she warned. Starling, founded in 2014, is based in the UK and specializes in providing checking accounts and lending through an app. This business is valued at $3.1 billion and is backed by giants such as Goldman Sachs and Fidelity.

“Many crypto wallets connect directly to the payment system. This is a risk to the safety of the global payment system,” she continued.

The major players in the payments market are all embracing cryptocurrencies. For example, the credit card giants Mastercard and Visa open the network to digital assets, while PayPal allows users to exchange Bitcoin and other cryptocurrencies. In contrast, authorities are concerned as the financial system is increasingly caught up in the volatile world of cryptocurrencies.

Cryptocurrencies threaten the safety of the global payment system - Photo 1.

Anne Boden, CEO of digital bank Starling

In the last month alone, nearly $400 billion in cryptocurrencies has evaporated as investors panic over the demise of terraUSD, the popular stablecoin.

This is not the first time Boden has warned about the risks of the crypto space. In the past, she warned about the risk of users falling victim to scammers when investing in cryptocurrencies.

“Customers are being scammed,” she said. “We will spend more time protecting our customers against scammers than promoting crypto.”

When asked if Starling will offer cryptocurrency, Ms. Boden said the next few years won’t. She added that crypto businesses still have a lot to do when it comes to anti-money laundering.

According to CNBC

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