Starling Bank chief called cryptocurrencies a security threat to payment systems

According to Anne Boden, the danger lies in the direct connection of digital asset wallets to platforms for transactions

09.06.2022 - 08:50

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2 min

What’s new? Anne Boden, CEO of UK digital bank Starling Bank, believes that digital assets pose a threat to payment systems around the world as many cryptocurrency wallets connect to such systems directly. She also added that crypto companies need to strengthen their anti-money laundering (AML) compliance measures. Boden said this at the Money 20/20 conference on financial technologies.

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What other statements have been made? Boden reported that many customers fall victim to scammers and banks have to spend more time protecting consumers than promoting cryptocurrencies. She also added that Starling Bank has no plans to offer cryptocurrencies to its customers for the next two years.

Starling Bank is a digital bank founded in 2014 in the UK. Since its start, the institution raised about 500 million pounds of investments ($625 million at the exchange rate on June 9), and the company’s valuation is 2,5 billion pounds (about $3,1 billion). Among the bank’s key investors are large companies such as Goldman Sachs and Fidelity Investments.

In April, European Central Bank Executive Board member Fabio Panetta stated that crypto assets threaten global financial stability and called on all regulators to act in a coordinated manner to ensure control over cryptocurrency activities. G7 countries also called to accelerate the “development and implementation of consistent and comprehensive regulation” of cryptocurrencies following the collapse of the Terra ecosystem.

Later, IMF Deputy Managing Director Gita Gopinath called cryptocurrencies an extremely risky asset class and noted that they need to be regulated.

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