Visa States that You can get Most situations, Besides Crypto Currencies
The news this week is that several banks in the USA and the UK have banned the utilization of credit cards to buy crypto currencies (CC’s). The stated reasons are impossible to think – like wanting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks allows debit card purchases, rendering it clear that the only real 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 credit card companies want to prohibit you from utilizing their facilities to buy crypto currencies? There must be some believable reasons, and they’re NOT the reason why stated.
One thing that banks are scared of is how difficult it is always to confiscate CC holdings when the credit card holder defaults on payment. It would become more difficult than re-possessing a home or perhaps a car. A crypto wallet’s private keys could be put on a memory stick or a piece of paper and easily taken from the united states, with minimum trace of its whereabouts. There can be quite a high value in some crypto wallets, and the credit card debt may never be repaid, resulting in a declaration of bankruptcy and an important loss for the bank. The wallet still provides the crypto currency, and the owner can later access the private keys and make use of a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed.
We are definitely not advocating this type of unlawful behavior, nevertheless the banks are alert to the chance and many of them want to shut it down. This can’t happen with debit cards while the banks are never out-of-pocket – the cash comes from your account immediately, and only if you have enough of your cash there to start with. We struggle to get 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 customers are now conscious that credit card companies and banks do have the ability to restrict what you can get making use of their credit card. This is not how they advertise their cards, and it is likely a surprise to the majority of users, that are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all of those other merchants who have 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 things to happen. This further illustrates the amount to that the banking industry feels threatened by Crypto Currencies. IEO
Now there’s 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 could be implemented across the board, and that leaves each country around the globe trying to determine what things to do. China has chose to ban CC’s, Singapore and Japan embrace them, and many other countries remain scratching their heads. What they’ve in keeping is that they wish to collect taxes on CC investment profits. This is not too unlike 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 something for his or her 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 future of fiat and digital currencies? As people around the globe have more frustrated with outrageous bank profits and bank overreach into their lives, there’s hope that consumers will soon be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.