Anne Boden, Founder and CEO of U.K. digital bank Starling Bank, says that crypto poses a threat to existing global payment systems.
According to a report by CNBC, Boden reiterated her criticism against digital assets, warning that crypto is “very dangerous.” Boden made her comments at this year’s Money20/20 Europe conference (held 7-9 June 2022 in Amsterdam).
Starling, which is backed by Goldman Sachs, was founded by Boden in 2014 as a digital bank offering free checking accounts and loans through an app. The bank was recently valued at $3.1 billion, with Goldman and Fidelity, among others, serving as investors.
Boden explained the dangers of crypto to audience members,
A lot of [crypto] wallets are being connected directly to payment schemes. This is a threat to the safety of our payment schemes around the world.
As noted in the report, major payment services around the globe, including Mastercard, Visa, and PayPal, are now paving the way for users to interact with digital assets. However, regulators are concerned that the meshing of crypto with existing payment platforms may pose unforeseen risks.
Boden continued her argument against crypto, saying that Starling customers were being “scammed,” and that the bank was devoting a significant amount of time to protecting clients from crypto scammers.
When asked whether Starling would ever offer crypto services, Boden said it was unlikely to happen in the next couple of years and that crypto companies needed to improve their anti-money laundering (AML) measures.
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