Visa Tells You can buy Just about anything, With the exception that Crypto Currencies
The news this week is that several banks in the USA and the UK have banned the utilization of bank cards to purchase crypto currencies (CC’s). The stated reasons are impossible to think – like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks allows bank card purchases, making it clear that the only real 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 desire, however many banks and bank card companies want to prohibit you from using their facilities to purchase crypto currencies? There must be some believable reasons, and they are NOT the reasons stated.
One thing that banks are frightened of is how difficult it is always to confiscate CC holdings when the bank card holder defaults on payment. It’d be much more difficult than re-possessing a house or a car. A crypto wallet’s private keys can be placed on a memory stick or a bit of paper and easily taken from the united states, with minimum trace of its whereabouts. There can be a high value in some crypto wallets, and the bank 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 dog 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 sort of unlawful behavior, however the banks are conscious of the likelihood and some of them want to shut it down. This can’t happen with debit cards since the banks are never out-of-pocket – the amount of money comes from your account immediately, and only if there is enough of your hard earned money 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 might be bogus. The fallout from these actions is that investors and individuals are now conscious that bank card companies and banks really do have the capability to restrict what you can aquire with their credit card. This isn’t how they advertise their cards, and it is probable a surprise to the majority of users, who are quite used to deciding for themselves what they’ll purchase, especially from CC Exchanges and the rest of the merchants who have established Merchant Agreements with one of these banks. The Exchanges have done nothing wrong – neither maybe you have – but fear and greed in the banking industry is causing strange what to happen. This further illustrates the degree to which the banking industry feels threatened by Crypto Currencies.
Now 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 can be implemented over the board, and that leaves each country around the world trying to determine what to do. China has made a decision to ban CC’s, Singapore and Japan embrace them, and many other countries are still scratching their heads. Wh non fungible tokens for sale at they have in accordance is that they want to collect taxes on CC investment profits. This isn’t too unlike the 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 a little something because of their 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 world have more fed up with outrageous bank profits and bank overreach into their lives, there’s hope that consumers will be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.