This week’s news is that several banks in the US: UK have banned the use of credit cards to buy cryptocurrencies (CC’s). It is impossible to believe the mentioned reasons, for example, money laundering, attempts to limit gambling, protecting the retail investor from too much risk. Interestingly, banks will allow debit card purchases, making it clear that the only risks protected are theirs.
With a credit card, you can gamble in a casino, buy weapons, drugs, alcohol, pornography, whatever you want, but some banks and credit card companies want to ban you from using their ability to buy cryptocurrencies. There must be several reasons to believe, these are NOT the reasons given.
One of the things banks are afraid of is how difficult it will be to seize CC funds when a credit card holder does not pay. It would be much harder than rebuilding a house or car. Crypto wallet personal keys can be stored on a memory card or paper, easily removed from the country without a trace or trace. Some crypto wallets may have high value, և credit card debt may never be repaid, leading to a bankruptcy declaration զգալի significant loss of the bank. The wallet still contains cryptocurrency, և the owner can later access private keys և use the local CC Exchange in a foreign country to convert և to save money. Really naughty scenario.
We certainly do not support such illegal behavior, but the banks are aware of the possibility, some of them want to close it. This can not happen in the case of debit cards, as banks never go out of pocket. The money goes out of your account immediately, և only if you have enough money to start there. We are struggling to find honesty in the history of the bank in limiting the risks of gambling. Interestingly, Canadian banks do not jump on this bandit, perhaps realizing that the reasons for this are false. As a result of these actions, investors և consumers are now realizing that credit card companies և banks can really limit what you can buy with your credit card. They do not advertise their cards in this way, which is probably a surprise to most users who are accustomed to deciding what to buy, especially from CC Exchanges and all the other merchants who have entered into trading agreements with these banks. The stock exchanges have not done anything wrong, neither have you, but the fear and greed in the banking sector are causing strange things. This further shows the extent to which the banking industry is threatened by cryptocurrencies.
At the moment, there is little cooperation, trust or mutual understanding between the fiat money world և CC world և. The CC world does not have a central oversight body where regulations can be applied in general, և it makes every country in the world try to figure out what to do. China has decided to ban CCs, Singapore and Japan accept them, and many other countries are still scratching their heads. What they have in common is that they want to collect taxes on CC investment profits. This is not so different from the early days of digital music, as the Internet promotes the unfettered distribution of unlicensed music. Digital music licensing schemes were eventually developed and adopted because listeners paid little for their music rather than endless piracy, and the music industry (artists, producers, record companies) was better off with reasonable licensing fees than nothing. : Could there be a compromise in the future of fiat և digital currencies? As people around the world become more fed up with the outrageous profits of banks, the over-exploitation of banks in their lives, there is hope that consumers will be treated with respect, not forever with high saddle costs, with unreasonable restrictions.
Cryptocurrencies և blockchain technology increase the pressure around the world to reach a reasonable compromise. this is a change of game.
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