Crypto Puts Global Payment Systems at Risk? Financial Firms Connection With Digital Coins Now Worries Regulators

Crypto puts global payment systems at risk, according to Anne Boden, the U.K. digital bank Starling's CEO. She spoke up about her concern on Tuesday, June 7.

Ever since digital coins attracted more and more investors, financial regulators and other experts have warned that people may lose a lot of money if they are not careful enough.

This is because of the uncertainty of these cryptos. On the other hand, they also attract online attackers and other cybercriminals.

"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," said Boden during the recent Money 20/20 fintech conference, which happened in Amsterdam.

Crypto Puts Global Payment Systems at Risk?

According to CNBC's latest report, Boden is concerned about the ties of global payment systems to the volatile cryptocurrencies, believing that this situation is very dangerous.

Recently, the terraUSD, a popular stablecoin that was supposed to be worth $1 at all times, lost around $400 billion. This just shows that cryptocurrencies can suddenly drop without any warning, leading to huge revenue losses that can drastically affect investors.

As of writing, many financial companies are further embracing the rise of digital coins. These include Paypal, which lets users trade Bitcoin, as well as Visa and Mastercard; they have already opened their networks to digital assets.

Starling CEO's Previous Crypto Warning

Before Starling's CEO shared her latest warning, she already shared the rising crypto space's dangers.

She said that as more investors rely on digital coins to gain revenues, the higher the chances of them becoming fraud victims.

Boden said that crypto integrations of Starling are unlikely to happen, explaining that the blockchain industry needs to make more efforts to enhance its anti-money laundering controls.

If you still haven't invested in any cryptocurrency, check these risks provided by Forbes:

• Cryptocurrencies are uninsured, intangible, and illiquid.
• Many malicious actors can easily manipulate digital coin consumers.
• Issues in care, control, and custody.

In May, the Luna crypto was able to bounce back after the $40 billion collapse.

On the other hand, China's renewed Bitcoin production was expected to happen as miners skirt the crypto regulations of Beijing.

For more news updates about cryptocurrencies and other fintech topics, always keep your tabs open here at TechTimes.

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Written by: Griffin Davis