Post Office ‘risking brand’ with crypto deal

THE Post Office has been accused of giving legitimacy to high-risk investments after teaming up with a cryptocurrency trading business.

Bosses at the state-owned institution have signed a deal with Swarm Markets, an exchange which connects buyers and sellers of online tokens including cryptocurrencies such as Bitcoin. The agreement allows Swarm to use the Post Office’s identity verification app, which is called Easyid. Users who have verified their identity through Easyid will be able to access Swarm’s website and buy cryptocurrency vouchers with a few taps of their phone. The vouchers can then be redeemed for cryptocurrencies such as Bitcoin and Ethereum.

The Post Office will not receive commission on vouchers sold, but is paid for use of its ID verification software. Swarm pays funds to Yoti, a company which partners with the Post Office on the app. Campaigners and experts condemned the deal, warning that the Post Office has put its reputation on the line.

Cryptocurrency prices are prone to wild swings and Andrew Bailey, Bank of England Governor, has been among a host of senior figures to warn that punters risk massive losses as a result.

Dame Angela Eagle, an MP who sits on the Treasury select committee, said: “It’s extremely concerning ... The Post Office is running a huge risk of completely damaging a trusted brand.

They’re risking their own brand for something which is unregulated, and giving it legitimacy and credibility. I think they should stop it right away.”

Baroness Nicky Morgan, former chairman of the Treasury select committee, said: “It does seem a very odd thing for the Post Office to get involved with.”

This year the City watchdog warned that people buying Bitcoin did not understand it, cautioning the cryptocurrency was extremely risky.