The news headlines this week is that several banks in the USA and the UK have banned the usage of bank cards to purchase crypto currencies (CC’s). The stated reasons are impossible to trust – like trying to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks enables debit card purchases, which makes it clear that the only risks being protected are their own.

With a credit card you are able to gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you wish, but some banks and bank card companies desire to prohibit you from using their facilities to purchase crypto currencies? There has to be some believable reasons, and they are NOT the causes stated.

Something that banks are frightened of is how difficult it is always to confiscate CC holdings when the bank card holder defaults on payment. It would become more difficult than re-possessing a home or a car. A crypto wallet’s private keys may be put on a memory stick or a piece of paper and easily taken off the united states, with minimum trace of its whereabouts. bsc airdrops There could be a high value in a few crypto wallets, and the bank card debt may never be repaid, ultimately causing a declaration of bankruptcy and a substantial loss for the bank. The wallet still offers the crypto currency, and the dog owner 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 are certainly not advocating this sort of unlawful behavior, nevertheless the banks are alert to the likelihood and a number 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 your account immediately, and only if there is enough of your cash there to begin with. We struggle to find any honesty in the bank’s story about curtailing gambling and risk taking. It’s interesting that Canadian banks aren’t jumping with this bandwagon, perhaps realizing that the stated reasons for doing so are bogus. The fallout from these actions is that investors and people are now aware that bank card companies and banks do have the ability to restrict what you can aquire with their credit card. This is simply not how they advertise their cards, and it is likely a surprise to the majority of users, who’re 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 your banks. The Exchanges have done nothing wrong – neither perhaps you have – but fear and greed in the banking industry is causing strange what to happen. This further illustrates their education to that the banking industry feels threatened by Crypto Currencies.

At this time there’s little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world does not have any central controlling body where regulations may be implemented throughout the board, and that leaves each country all over the world trying to determine what to do. China has decided to ban CC’s, Singapore and Japan embrace them, and a great many other countries remain scratching their heads. What they have in common is that they wish to collect taxes on CC investment profits.

This is simply not too unlike the first days of digital music, with the web 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 because of their music, rather than endless pirating, and the music industry (artists, producers, record companies) were OK with reasonable licensing fees rather than nothing. Can there be compromise in the continuing future of fiat and digital currencies? As people all over the world have more fed up with outrageous bank profits and bank overreach into their lives, there’s hope that consumers is going to be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.