This news this week is that several banks in the USA and the UK have banned the use of charge cards to get crypto currencies (CC’s). The explained reasons are impossible to believe – like seeking to curtail money washing, gambling, and protecting the retail investor from extreme risk. Interestingly, the banking companies will allow debit greeting card purchases, so that it is clear that the sole risks being protected are their own. sell bitcoin
With a credit-based card you can gamble at a gambling establishment, buy guns, drugs, liquor, pornography, everything and whatever you desire, sometimes banking institutions and credit card companies want to prohibit you by using their facilities to get crypto currencies? Right now there must be some believable reasons, and they are NOT the reason why stated.
A single thing that banks are afraid of is how difficult it would be to confiscate CC coopération when the credit-based card holder defaults on payment. This would be much more difficult than re-possessing a house or an automobile. A crypto wallet’s private take some time can be put on a memory stick or a piece of newspaper and simply removed from the country, with minimum trace of its location. There can be a high value in a few crypto wallets, and the credit card debt may never be repaid, leading to a declaration of personal bankruptcy and a tremendous loss for the bank. The pocket still contains the crypto currency, and the owner can later access the private keys and use an area CC Exchange in another country to convert and pocket the money. A nefarious scenario indeed.
We are definitely not in favor of this kind of outlawed behavior, but the banking institutions know about the opportunity and some of which want to shut it down. This can’t happen with debit cards as the banks are never out-of-pocket – the amount of money comes away of your immediately, and only if there is enough of your money there to start out with. We all struggle to find any honesty in the bank’s story about curtailing playing and risk taking. Really interesting that Canadian banking companies are not jumping about this bandwagon, perhaps realizing that the explained reasons for doing so are counterfeit. The fallout from these actions is that buyers and consumers are now which credit card companies and banks do have the ability to limit what you can buy with their credit card. This is not the way they advertise their cards, in fact it is likely a shock to most users, who are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all the other vendors who have established Product owner Agreements with these finance institutions. The Exchanges have done nothing wrong – nor maybe you have – but dread and greed in the banking industry is creating strange things to happen. This further illustrates the degree to which the banking industry feels endangered by Crypto Currencies.
In this point there exists little cooperation, trust, or understanding between the fiat money world and the CLOSED CIRCUIT world. The CC world has no central handling body where regulations can be implemented across the board, and that leaves each country around the world trying to number out what to do. China has decided to ban CC’s, Singapore and Japan embrace them, and many other countries are still scratching their mind. What they share is that they want to acquire taxes on CLOSED CIRCUIT investment profits. This is not too unlike the early days of digital music, with the internet facilitating the unfettered growth and distribution of unlicensed music. Digital music certification schemes were eventually developed and accepted, as audience were OK with paying a little something for music, rather than limitless pirating, and the music industry (artists, producers, record companies) were OK with reasonable licensing fees alternatively than nothing. Can there be compromise in the future of fiat and digital currencies? As people around the world get more fed up with outrageous bank profits and bank overreach into their lives, there is trust that consumers will be regarded with respect but not be forever saddled with high costs and unprovoked restrictions.