The news: Monzo confirmed that the recent turmoil engulfing the digital asset markets will not stop its crypto investment plans.
The neobank’s co-founder and CTO Jonas Templestein said at a Financial Times Live event that “an easily tradable digital store of value has been instrumental for many people.”
Market meltdown—or opportunities? In a time of crypto job layoffs, plummeting digital asset prices, and crypto lenders blocking withdrawals, Monzo’s assertion shows it believes in digital assets’ long-term value and still sees their growth potential.
- The downturn could provide opportunities for Monzo to pick up one of many struggling crypto firms at a discount, giving it immediate insider knowledge and the necessary infrastructure to succeed.
- Some consumers grappling with sliding prices will look to more trustworthy, established financial institutions like Monzo for their future investments, rather than to cowboy crypto startups unlikely to survive.
- But the new, potentially risky crypto products may not translate into sustainable profits—something Monzo has struggled with in the past.