The stated reasons are not impossible to think – like attempting to curtail money laundering, gaming, and protecting the retail buyer from excess danger. The banks will allow debit card purchases, which makes it very clear that the only dangers being protected are their own.
With a credit card you can gamble in a casino, buy firearms, drugs, alcohol, porn, anything and everything you would like, but some banks and credit card companies wish to prohibit you from using their facilities to buy crypto monies? There must be some believable reasons, and they’re NOT the reasons stated.
One thing that banks are fearful of is how difficult it would be to confiscate CC holdings once the credit card holder defaults on payment. It would be more difficult than re-possessing a house or a vehicle. A crypto wallet’s private keys could be placed onto a memory stick or a sheet of paper and readily removed from the country, with very little if any trace of its whereabouts. There can be quite a high value in some crypto wallets, and the credit card debt may never be reimbursed, causing a declaration of bankruptcy and a significant reduction for the bank. The pocket still includes the crypto money, and the operator can later get the private keys and utilize a local CC Exchange at a foreign nation to convert and pocket the money. A nefarious scenario really sumokoin.
We are certainly not advocating this kind of unlawful behavior, but the banks are aware of the possibility and some of them want to shut it down. This can not happen with debit cards since the banks are never out-of-pocket – that the money comes out of your account immediately, and only if there’s enough of your cash there to start with. We struggle to find any honesty in the bank’s narrative about curtailing gambling and risk taking. It’s interesting that Canadian banks aren’t jumping on this thing, possibly realizing that the stated reasons for doing so are bogus. The fallout from such activities is the fact that consumers and investors are now aware that credit card companies and banks actually do have the ability to restrict what you can buy with their credit card. This isn’t how they market their own cards, and it’s probably a surprise to most consumers, who are very utilized to deciding for themselves what they will buy, particularly from CC Exchanges and the rest of the retailers who have established Merchant Agreements with those banks. The concessions have done nothing wrong – neither have you but fear and greed in the banking business is causing strange things to occur.
At this point there is little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world doesn’t have central controlling body in which regulations can be implemented throughout the board, which leaves every nation around the world hoping to determine what to do. This isn’t too similar to the early days of electronic audio, with the internet facilitating the unfettered proliferation and supply of unlicensed music. Digital music licensing schemes were finally developed and accepted, as listeners have been OK with paying a little something for their songs, instead of endless pirating, along with the music business (artists, producers, record companies) were OK with reasonable licensing fees instead of nothing. Is there compromise in the future of fiat and electronic currencies? As people around the globe get more fed up with outrageous bank profits and bank overreach in their own lives, there’s hope that consumers will be considered with respect and never be forever saddled with high costs and unwarranted restrictions.
Crypto Currencies and Blockchain tech increase the pressure around the world to make a reasonable compromise happen – – this is a game changer.