Visa States that You can aquire Almost anything, Besides Crypto Currencies.

The news headlines this week is that several banks in the USA and the UK have banned the usage of credit cards to buy crypto currencies (CC’s). The stated reasons are impossible to believe – like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks enables 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, but some banks and charge card companies want to prohibit you from utilizing their facilities to buy crypto currencies? There has to be some believable reasons, and they are NOT the reason why stated.

Something that banks are afraid of is how difficult it should be to confiscate CC holdings when the charge card holder defaults on payment. It would be much more difficult than re-possessing a home or even a car. A crypto wallet’s private keys can be placed on a memory stick or an item of paper and easily taken off the country, with little or no trace of its whereabouts. There can be a high value in a few crypto wallets, and the charge card debt may never be repaid, leading to a declaration of bankruptcy and a significant loss for the bank. The wallet still offers the crypto currency, and the master 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’re definitely not advocating this sort of unlawful behavior, nevertheless the banks are conscious of the possibility and some of them want to shut it down. bsc airdrops This can’t happen with debit cards whilst the banks are never out-of-pocket – the cash comes from your account immediately, and only if there is enough of your cash there to begin with. We struggle to locate 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 consumers are now conscious that charge card companies and banks really do have the capacity to restrict what you can aquire with their credit card. This is simply not how they advertise their cards, and it is likely a shock to many users, who’re quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all the other merchants who have established Merchant Agreements with your banks. The Exchanges did nothing wrong – neither have you – but fear and greed in the banking industry is causing strange items to happen. This further illustrates their education to that your banking industry feels threatened by Crypto Currencies.

At this point 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 can be implemented over the board, and that leaves each country around the globe trying to determine what things to do. China has decided to ban CC’s, Singapore and Japan embrace them, and many other countries continue to be scratching their heads. What they have in keeping is that they would like to collect taxes on CC investment profits.

This is simply not too unlike early days of digital music, with the internet 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, rather than endless pirating, and the music industry (artists, producers, record companies) were OK with reasonable licensing fees rather than nothing. Can there be compromise in the future of fiat and digital currencies? As people around the globe have more completely fed up with outrageous bank profits and bank overreach within their lives, there’s hope that consumers is likely to be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.

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