The news this week is that several banks in the USA and the UK have banned the use of bank cards to purchase crypto currencies (CC’s). The stated reasons are impossible to believe – like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks will allow debit card purchases, rendering it clear that the sole risks being protected are their own.
With a bank card you can gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you want, however, many banks and bank card companies desire to prohibit you from using their facilities to purchase crypto currencies? There should be some believable reasons, and they’re NOT the causes stated.
A very important factor that banks are frightened of is how difficult it would be to confiscate CC holdings when the bank card holder defaults on payment. It’d be much more difficult than re-possessing a home or a car. A crypto wallet’s private keys could be placed on a memory stick or a bit of paper and easily taken from the united states, with minimum trace of its whereabouts. There can be quite a high value in some crypto wallets, and the bank card debt may never be repaid, ultimately causing a declaration of bankruptcy and an important loss for the bank. The wallet still offers the crypto currency, and the master can later access the private keys and make use of a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed.
We are certainly not advocating this sort of unlawful behavior, but the banks are conscious of the likelihood and many of them desire to shut it down. cryptocurrency sale This can’t happen with debit cards while the banks are never out-of-pocket – the amount of money comes out of your account immediately, and only when there is enough of your money there to begin with. We struggle to find any honesty in the bank’s story about curtailing gambling and risk taking. It’s interesting that Canadian banks are not jumping with this bandwagon, perhaps realizing that the stated reasons for doing so are bogus. The fallout from these actions is that investors and people are now conscious that bank card companies and banks really do have the ability to restrict what you can aquire making use of their credit card. This is simply not how they advertise their cards, and it is probable a surprise to the majority of users, who are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and the rest of the merchants who’ve established Merchant Agreements with these banks. The Exchanges did nothing wrong – neither have you – but fear and greed in the banking industry is causing strange items to happen. This further illustrates their education to that the banking industry feels threatened by Crypto Currencies.
At this time there’s little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world does not have any central controlling body where regulations could be implemented over the board, and that leaves each country all over the world trying to figure out things to do. China has made a decision to ban CC’s, Singapore and Japan embrace them, and a great many other countries continue to be scratching their heads. What they have in common is that they would like to collect taxes on CC investment profits. This is simply not too unlike early days of digital music, with the web facilitating the unfettered proliferation and distribution of unlicensed music. Digital music licensing schemes were eventually developed and accepted, as listeners were OK with paying something because of their music, as opposed to endless pirating, and the music industry (artists, producers, record companies) were OK with reasonable licensing fees as opposed to nothing. Can there be compromise in the future of fiat and digital currencies? As people all over the world have more frustrated with outrageous bank profits and bank overreach within their lives, there’s hope that consumers is going to be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.