Cryptocurrencies Aren’t Flexible Enough For Widespread Adoption – TransferWise CEO Kristo Kaarmann

News | June 7, 2018 By:

Kristo Kaarmann, co-founder of UK-based money transfer service TransferWise, said that cryptocurrencies aren’t flexible enough to be adopted on a widespread basis.

During the Money 2020 conference in Amsterdam, Kaarmann said that widespread adoption would be “exciting,” but there are currently few things that could be paid for with cryptocurrency.

“It would be super exciting if the world decides that everyone will use it to buy homes and cars and sandwiches,” Kaarmann said. “But the last currency we launched (our service for) was the Egyptian pound and there is actually more things to do with an Egyptian pound than some of these cryptocurrencies.”

While investors and the financial services industry have cited cryptocurrencies’ potential for global use, the price volatility of cryptocurrencies has led to the inability to confidently use them as an instant and seamless medium of exchange.

During the conference, TransferWise also announced its partnership with French banking group BPCE, saying it will offer its low-cost money transfer service to the lender’s customers. The transfer service will be integrated with the banking group’s apps in 2019. By integrating the transfer service, Kaarmann claimed that BPCE will become the world’s biggest bank with transparent pricing, as well as France’s cheapest bank for sending funds abroad.

TransferWise supports more than 300 currency routes across the world as well as providing multi-currency accounts. It has around 3 million users transferring 2 billion euros ($2.3B USD) each month. It recorded its first full-year operating profit in 2017 and expects to do the same in 2018.