The news this week is that several banks in the United States and the United Kingdom have banned the use of credit cards for buying cryptocurrencies (CCs). The reasons described are impossible to believe – such as money laundering, gambling, and trying to protect retail investors from additional risks. Interestingly, banks will allow the purchase of debit cards, making it clear that the only risks are their own.
With credit cards you can gamble in a casino, buy guns, drugs, alcohol, pornography, everything and whatever you want, but some banks and credit card companies want to ban you from using their facilities to buy cryptocurrencies? There must be some credible reasons, and they are not the reasons given.
One thing that banks fear is how difficult it will be to forfeit CC holdings when credit card holders are in default on payments. It will be much more difficult than reoccupying a house or a car. The private key to a crypto wallet can be kept on a memory stick or piece of paper and easily removed from the country where its whereabouts are not found. Some crypto wallets can have high prices, and credit card debt can never be repaid, leading to bankruptcy and a significant loss for the bank. The wallet still contains crypto currency and the owner can later access the private keys and convert and pocket money using the local CC exchange in a foreign country. A horrible sight indeed.
We are certainly not in favor of such illegal behavior. This cannot happen through debit cards because banks are never out of pocket অর্থ money comes out of your account immediately, and only if there is a sufficient amount of your money. We struggle to find any honesty in the bank’s story about gambling and risk taking. It is interesting to note that Canadian banks are not jumping on this bandwagon, perhaps realizing that the reasons given for doing so are fake. The consequence of these actions is that investors and consumers are now aware that credit card companies and banks really have the power to limit what you can buy with their credit cards. That way they don’t advertise their cards and this is probably a surprise to most users, who are quite accustomed to deciding for themselves what they will buy, especially from CC Exchange and other merchants who have established merchant agreements with this bank. The exchanges have done no wrong – neither have you – but fear and greed are strange things happening in the banking industry. This further explains why the banking industry feels threatened by cryptocurrencies.
At the moment there is little cooperation, trust or understanding between Fiat Money World and CC World. CC World has no central regulatory body where regulations can be applied across the board and it tries to figure out what every country in the world needs to do. China has decided to ban CC, Singapore and Japan have embraced them, and many other countries are still scratching their heads. What they have in common is that they want to collect tax on the profits of CC investments. Unlike the early days of digital music, it facilitated the uninterrupted spread and distribution of unlicensed music via the Internet. Digital music licensing schemes were eventually developed and adopted, because listeners had to pay little for their music instead of endless pirating, and the music industry (artists, producers, record companies) was fine with nothing but reasonable licensing fees. What could be the future of Fiat and digital currency? As people around the world have become overwhelmed by the profits of the bank and the excesses of the bank in their lives, there is hope that consumers will be treated with respect and not forever tied to high costs and unreasonable restrictions.
Cryptocurrency and blockchain technology increase the pressure to make a reasonable compromise worldwide – it is a game changer.