This week’s news is that several banks in the United States and the United Kingdom have banned the use of credit cards to purchase cryptocurrency (CC). The reasons stated are unbelievable-such as trying to reduce money laundering, gambling, and protecting retail investors from excessive risks. Interestingly, banks will allow the purchase of debit cards, which clearly shows that the only risk protected is their own risk.
With a credit card, you can gamble in the casino, buy guns, drugs, alcohol, pornography and everything you want, but some banks and credit card companies want to prohibit you from using their facilities to buy cryptocurrency? There must be some convincing reason, not the stated reason.
One thing that banks worry about is how difficult it will be to confiscate the transcript holder when the credit card holder defaults on payment. This is much more difficult than re-owning a house or car. The private key of an encrypted wallet can be placed on a memory stick or paper and easily deleted from the country with little or no trace. There may be a high value in some cryptocurrency wallets, and the credit card debt may never be repaid, leading to bankruptcy declarations and causing significant losses to the bank. The wallet still contains cryptocurrency, and the owner can later access the private key and use the foreign local CC Exchange for exchange and pocket money. It is indeed an evil scene.
We are certainly not advocating this illegal behavior, but the banks are aware of this possibility and some of them want to close it. This will not happen with debit cards, because the bank will never pay out of pocket-the money will be withdrawn from your account immediately and only when you have enough money to start with. We can hardly find any honesty in the bank’s stories about reducing gambling and risk-taking behavior. Interestingly, Canadian banks have not jumped onto this trend, perhaps realizing that the reasons for doing so are false. The consequence of these actions is that investors and consumers are now aware that credit card companies and banks do indeed have the ability to limit the goods you can buy with their credit cards. This is not how they advertise cards. For most users who are accustomed to deciding what to buy, this may be a surprise, especially from CC Exchanges and all other merchants who have established merchant agreements with these banks. The exchange did nothing wrong-nor did you do it wrong-but the fear and greed of the banking industry are 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 fiat currency world and the CC world. There is no central control agency in the CC world to fully implement regulations, which makes every country around the world trying to figure out what to do. China has decided to ban CC, Singapore and Japan have embraced them, while many other countries are still working hard. What they have in common is that they want to tax CC investment profits. This is not quite similar to the early days of digital music. The Internet facilitated the unrestricted dissemination and distribution of unlicensed music. In the end, the digital music licensing program was developed and accepted because listeners can pay for music instead of endless piracy, and the music industry (artists, producers, record companies) can also use reasonable licensing fees instead of nothing. Can the future of fiat currency and digital currency be compromised? As people all over the world become more and more tired of high bank profits and over-dominated banking life, it is hoped that consumers will be respected instead of being perpetually troubled by high costs and unnecessary restrictions.
Cryptocurrency and blockchain technology have increased the pressure to make reasonable compromises on a global scale-this is a game changer.