Saturday, August 13, 2022

Revolut CEO Says Digital Currencies Are ‘Definitely Not a Fraud’

Revolut CEO Says Digital Currencies Are ‘Definitely Not a Fraud’

Cryptocurrencies are “not a fraud” despite recent public claims from celebrity critics, says Revolut CEO Nikolay Storonsky. This comes as the digital banking-alternative app is planning to commence a number of  digital currency services.

Also read: Ben Lawsky, Man Who Gave Us the ‘BitLicense’, Joins Ripple Board

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The Revolut co-founder’s statement is completely opposite to the views of JPMorgan CEO Jamie Dimon — who labeled bitcoin a “fraud” in a much-repeated interview quote. Storonsky indicated that the burgeoning bitcoin is like gold: neither of the two are used much for regular transactions — however, they still remain valuable.

“Real-world for gold is quite limited. But still there is a huge market, huge volumes that are being traded in the market, and these volumes determine the gold price.”

Bitcoin Price Is Driven by ‘Guesswork’

Storonsky, a former employee at Credit Suisse and Lehman Brothers, said 99 percent of the bitcoin price is “speculation-driven”. This also contrasts remarks by Credit Suisse CEO Tidjane Thiam, who called the cryptocurrency “the very definition of speculation and the very definition of a bubble”.

CNBC Bitcoin video
Image from CNBC video

Revolut is a London based fintech startup which has raised $66 million in its fund-raising round. The company has over 1 million active users, to which it plans to offer a range of new cryptocurrency services.

Its existing services already include currency exchange, peer-to-peer payments, and pre-paid debit card. It’s designed to be an alternative to traditional banks.

Cryptocurrency demand is globally visible. According to Storonsky, Revolut app users have requested the company to offer cryptocurrency support within the app — and they’ve listened. Once digital currency functionality commences, users will be able to buy, sell and hold various cryptocurrencies. Additionally, users can transfer digital assets to other Revolut users quickly.

Revolut’s Competition in the Fintech Industry

Revolut already has several competitors in the U.K. and Europe. Top neo-bank startups like Atom Bank, Tandem, and Starling Bank are also interested and taking part in the same business sector.

N26, a fast-growing direct bank, is a major player in the industry. According to N26, the company is getting 3,000 new users every week. Meanwhile, Revolut aims to grow its operations internationally to the United States, New Zealand, Singapore and Australia.

An additional fintech company, Square, is testing to add digital currency functionality to its app. Once the company integrates the technologies involved, users will be able to trade assets.

Bitcoin is now mainstream and in demand — it’s already surpassed the $8,000 USD mark and many predict it could reach over $10,000 in the coming months. Recently, billionaire ex-hedge fund manager Mike Novogratz said Bitcoin will cross over $10,000 before the start of 2018.

Finally, Storonsky said: “The reason why we are growing so fast is we provide real value to customers.”

Do you believe the ones opposing cryptocurrencies will have a lot to lose in coming years? Let us know what you think in the below comments section.


Images via CNBC, Revolut

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