This week's news is that several banks in the US and the UK have banned the use of credit cards to purchase cryptocurrency [CC]. The reasons for the statement are unbelievable – for example, trying to reduce money laundering, gambling, and protecting retail investors from excessive risk. Interestingly, banks will be allowed to purchase debit cards, which clearly shows that the only risk of being protected is their own risk.
With a credit card, you can gamble at the casino, buy guns, drugs, alcohol, pornography and everything you want, but some banks and credit card companies want to ban you from using their facilities to buy cryptocurrencies? There must be some convincing reasons, not these reasons.
One thing the bank is worried about is how difficult it is to confiscate the holder of the letter of credit when the credit card holder defaults on payment. This is much more difficult than re-owning a home or car. The private key of the encrypted wallet can be placed on a memory stick or paper and easily removed from the country with little or no trace. In some cryptocurrency wallets, there may be high value, and credit card debt may never be repaid, resulting in bankruptcy announcements and significant losses to the bank. The wallet still contains cryptocurrency, and the owner can later access the private key and use the local CC Exchange for redemption and pocket money abroad. It is indeed an evil scene.
We are certainly not advocating this illegal act, but banks are aware of this possibility, and some of them want to close it. This is not the case with debit cards, as banks will never pay for themselves – money will be taken out of your account immediately and will only be taken out of your account if you have enough money to start. It is difficult for us to find any honesty in the bank's story about reducing gambling and risk-taking. Interestingly, Canadian banks have not jumped on this trend, and may realize that the reason for doing so is false. The consequence of these actions is that investors and consumers now realize that credit card companies and banks do have the ability to limit the items you can buy with their credit cards. This is not the way they advertise cards, which can be a surprise for most users who are accustomed to what they decide to buy, especially from CC Exchanges and all other merchants who have established a merchant agreement with these banks. The exchange didn't do anything wrong – you didn't do anything wrong – but the fear and greed of the banking industry is causing strange things to happen. This further illustrates the extent to which the banking industry is threatened by cryptocurrencies.
At this point, there is little cooperation, trust or understanding between the legal currency world and the CC world. There is no central control agency in the CC world where regulations can be fully implemented, so every country in the world is trying to figure out what to do. China has decided to ban CC, Singapore and Japan also embrace them, and many other countries are still working hard. What they have in common is that they want to tax CC investment profits. This is not very similar to the early days of digital music, which promoted the unrestricted dissemination and distribution of unlicensed music. In the end, the digital music licensing program was developed and accepted because listeners could pay for music instead of endless piracy, and the music industry [artist, producer, record company] could use reasonable licensing fees instead of nothing. Can the future of legal tender and digital currency be compromised? As people around the world become more and more tired of high bank profits and over-domination of bank life, people want consumers to be respected, not always plagued by high costs and unnecessary restrictions.
Cryptographic currency and blockchain technology have increased the pressure to make reasonable compromises around the world – this is the person who changes the rules of the game.