BSP refers to numerous risks in cryptocurrency and claims that it does not support such transactions

The largest Bank in Papua New Guinea, Bank South Pacific (BSP), does not consider digital currencies worthy of inclusion in their set of financial services. The CEO of BSP recently highlighted too many risks in cryptocurrencies, adding that the country’s authorities also warned against using digital currencies

BSP refers to risks in cryptocurrencies

On Tuesday, Bank South Pacific CEO Robin Fleming said in an interview with The National that they are not interested in digital currencies. According to Fleming, BSP does not accept cryptocurrency transactions because they usually create certain risks, one of which is related to the interests and protection of consumers.

The CEO explained that most traditional financial products have customer protection measures in place:

“BSP does not accept cryptocurrency transactions because they are pseudonymous, not anonymous, since the cryptocurrency in the wallet is not linked to people, but to one or more specific keys (or addresses). Thus, crypto owners cannot be identified but all transactions are publicly available on the blockchain.”

Referring to these risks, Fleming further said that the country was unlikely to allow the use of digital currencies. He mentioned that the PNG Bank had issued a warning to residents that “cryptocurrencies are not currencies issued or regulated by the Central Bank.