The news headlines this week is that several banks in the USA and the UK have banned the use of charge cards to purchase crypto currencies (CC’s). The stated reasons are impossible to believe – like trying to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks will allow bank card purchases, making it clear that the sole risks being protected are their own.
With a bank card you are able to gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you desire, however many banks and charge card companies want to prohibit you from employing their facilities to purchase crypto currencies? There should be some believable reasons, and they’re NOT the reasons stated.
One thing that banks are afraid of is how difficult it is always to confiscate CC holdings once the charge card holder defaults on payment. It’d become more difficult than re-possessing a residence or perhaps a car. A crypto wallet’s private keys can be wear a memory stick or a piece of paper and easily taken from the united states, with minimum trace of its whereabouts. There could be a high value in certain crypto wallets, and the charge card debt may never be repaid, ultimately causing a declaration of bankruptcy and a significant loss for the bank. The wallet still provides the crypto currency, and the master can later access the private keys and use a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed.
We’re most certainly not advocating this sort of unlawful behavior, nevertheless the banks are aware of the possibility and many of them want to shut it down. This can’t happen with debit cards whilst the banks are never out-of-pocket – the amount of money comes from the account immediately, and only if you have enough of your cash there to start 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 on this bandwagon, perhaps realizing that the stated reasons for doing so can be bogus. The fallout from these actions is that investors and consumers are now aware that charge card companies and banks do have the capacity to restrict what you can aquire making use of their credit card. This is not how they advertise their cards, and it is probable a surprise to most users, who are quite used to deciding for themselves what they’ll purchase, especially from CC Exchanges and all of those other merchants who have established Merchant Agreements with one of these banks. The Exchanges did nothing wrong – neither maybe you have – but fear and greed in the banking industry is causing strange what to happen. This further illustrates the amount to that your banking industry feels threatened by Crypto Currencies.
At this time there is little cooperation, trust, or understanding between the fiat money world and the CC world. The CC world does not have any central controlling body where regulations can be implemented across the board, and that leaves each country all over the world trying to find out what 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’ve in keeping is that they want to collect taxes on CC investment profits. This is not too unlike the early days of digital music, with the net facilitating the unfettered proliferation and distribution of unlicensed music. Digital music licensing schemes were eventually developed and accepted, as listeners were OK with paying a little something for 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 continuing future of fiat and digital currencies? As people all over the world get more fed up with outrageous bank profits and bank overreach within their lives, there is hope that c cryptocurrency sale onsumers will soon be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.