As the paradigm of finance gradually repositions from traditional currencies to cryptocurrencies, it is likely that fiat supporters may find it a hard pill to swallow. In an attempt to oppose this tradition, Kristo Kaarmann, CEO of fintech firm TransferWise, stated that the Egyptian pound has been more beneficial than most digital currencies, pointing to the emerging technology’s scalability issues.
Cryptocurrencies Lack Flexibility
On the sidelines of the Money 20/20 conference in Amsterdam, Kaarmann acknowledged CNBC’s Arjun Kharpal and that the lack of flexibility prevents the broad adoption of virtual currencies.
The CEO’s statement validates his view that even though cryptocurrencies are indeed fascinating, their usage is still relatively restricted. Kaarmann, however, hasn’t completely given up on the value of cryptocurrencies. He further stated that seeing the world buy homes, cars and even sandwiches with digital currencies is already an exciting addition to the existing financial framework.
Presenting his due regards to the crypto sector, he said, “But the last currency we launched [our service for] was the Egyptian pound and there are actually more things to do with an Egyptian pound than some of these cryptocurrencies.”
TransferWise Bullish on Fiat to Save Its Business
Amidst the swift technological development taking the world by storm, the introduction of cryptocurrencies has been a pivotal achievement. However, understanding the problems regarding the digital sector is a fundamental precursor to a good investment strategy. The volatility, the illegalities, and the regulations have subjected many traders and other agents in the space to serious doubts.
TransferWise has also declared its collaboration with France’s banking group BPCE to offer inexpensive money transfer services to lenders. Transferwise is a well-established UK based organization that came into being in 2011. Time and again, the company has proved its resourcefulness and thus emerged as a leading online service in the market.
The collaboration with BPCE also stamps Kamraan’s believe that the banking group will soon become the largest service provider due to its transparency with price signals. The collaboration also means that the bank will offer a budget-friendly product to send money abroad.
A total of three million active users are currently passing $2.3 billion every month via TransferWise. Even though the platform has a net worth in the billions, Kamraan stated that the company does not intend to list on the stock market or fetch a banking license. The only motive at currenet is to make money exchange easy, secure and truly “borderless.”
CEO Kamraan hopes to retain the platform’s openness while continuing to promote growth for an even larger user base. However, if the crypto craze continues, TranserWise could also hop on the crypto bandwagon. A complete turnabout in the field is common, as we have already seen with JPMorgan’s CEO Jamie Dimon backpedalling on his claim that bitcoin was fraud.
Will Transferwise also have a change of heart? Share your views in the comments section.