UK bank executives have blocked customer access to cryptocurrencies due to concerns about fraud and volatility, according to testimony before the House of Commons Treasury Select Committee.

CEO of NatWest Group, Alison Rose, stated that the bank had taken a hard line on crypto and was blocking retail and wealth customers from transferring into crypto assets due to the volatility and stability of the platforms.

Rose cited that 60% of customer fraud originated from social media or technology platforms. Other bank executives were also wary of cryptocurrencies, but supportive of the UK Treasury’s proposed regulations.

They saw potential in ensuring customer safety if they chose to invest in cryptocurrencies. Bank executives were more skeptical about the potential benefits of a central bank digital currency.

CEO of Barclays, Matt Hammerstein, noted that the main benefit would be modernization of payment infrastructure, but there was a risk of creating a two-tier payment system and potential bank run.