Bitcoin and other cryptocurrencies are a truly decentralized economy and all regulated economy like banks and credit card companies are horrified with its popularity. Top 5 credit card companies in USa already banned the transactions involving cryptocurrency purchase. There are some additional
Here are the indications that Banks and credit card companies are losing their control and they are trying to control the cryptocurrency growth.
- JPMorgan Chase & Co., Bank of America Corp, and Citigroup Inc halted the purchases of Bitcoin and other cryptocurrencies on their credit cards.
- Visa ended its relationship with a renowned cryptocurrency currency card provider, Wave Crest
- VISA and Mastercard are making cryptocurrency purchase harder on their payment gateway by hugely increasing service charges and interest rate for such purchases
- Discover credit card has banned purchasing Cryptocurrency.
- Capital One also banned cryptocurrency transactions
- Some cryptocurrency-backed debit cards dropped from Visa network.
- MasterCard removes cryptocurrency Debit Card availability outside European Economic Area (EEA).
- UK's Lloyds Banking Group which runs Lloyds bank, Halifax, Bank of Scotland and MBNA banned its customers from buying bitcoin with their credit cards.
- Canadian TD Bank Bans Credit Card Purchases
- Indian banks are not allowing cryptocurrency purchase through their Debit or Credit card
- Indian banks (SBI, ICICI Bank, HDFC Bank, Axis Bank and Yes Bank) suspended accounts of major Bitcoin exchanges in the country. Citi India also banned purchase of cryptocurrency using their card
- IRS is treating cryptocurrency as property or asset for tax purpose but all credit card companies are treating purchase as cash advance which leading to additional charges and higher interest rate
- Coinbase has reported that visa powered cards were charged more than expected on its platform. Coinbase restricted additional on the new credit card by US customers to avoid any confusion of additional charges and unallowed credit cards. They want the user experience to be smooth.
These all examples indicates that banks and major payment gateways like VISA, MasterCard, Discover and others all are horrified with cryptocurrency popularity and are afraid of losing market capitalization. People are desperate to buy because they see potential in its growth. Some of the earlier investors are now the millionaire.
Disclaimer
I am not a financial advisor. This article is just for information purpose and is not an investment advice. This just indicates my personal view which may or may not be the best one. You should realize that Cryptocurrency market is very volatile and market fluctuate a lot on daily basis. You may gain 100 fold or lose all your investments. Invest wisely. You should not take a big risk. It is a good suggestion to invest not more than 5–10% of your saving with such an unpredictable market. Otherwise, you may face a big loss.
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