Visa States You can purchase Just about anything, Other than Crypto Currencies
The news headlines 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 stated reasons are impossible to trust – like wanting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks will allow debit card purchases, which makes it clear that the only risks being protected are their own.
With a bank card you can gamble at a casin Uniswap o, buy guns, drugs, alcohol, pornography, everything and anything you desire, however, many banks and bank card companies desire to prohibit you from employing their facilities to get crypto currencies? There should be some believable reasons, and they are NOT the reason why stated.
One thing that banks are afraid of is how difficult it is always to confiscate CC holdings once the bank card holder defaults on payment. It would be more difficult than re-possessing a home or perhaps a car. A crypto wallet’s private keys can be wear a memory stick or a bit of paper and easily removed from the nation, with little if any trace of its whereabouts. There could be 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 contains 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, but the banks are conscious of the likelihood and some of them desire to shut it down. This can’t happen with debit cards whilst the banks are never out-of-pocket – the money comes from the account immediately, and only if there is 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 individuals are now aware that bank card companies and banks do have the capacity to restrict what you can get using their credit card. This isn’t how they advertise their cards, and it is likely a surprise to the majority of users, who are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all the other merchants who’ve established Merchant Agreements with these banks. The Exchanges have inked nothing wrong – neither perhaps you have – but fear and greed in the banking industry is causing strange items to happen. This further illustrates the amount to which the banking industry feels threatened by Crypto Currencies.