The news this week is that several banks in the USA and the UK have banned the usage of bank cards to buy crypto currencies (CC's). The stated reasons are impossible to trust - like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks will allow bank card purchases, rendering it clear that the sole risks being protected are their own.

With a credit card you can gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you want, but some banks and bank card companies want to prohibit you from using their facilities to buy crypto currencies? There has to be some believable reasons, and they're NOT the reason why stated.

A very important factor that banks are scared of is how difficult it should be to confiscate CC holdings once the bank card holder defaults on payment. It'd be much more difficult than re-possessing a house or perhaps a car. A crypto wallet's private keys could be wear a memory stick or an item of paper and easily removed from the country, with little or no trace of its whereabouts. There could be a high value in certain crypto wallets, and the bank card debt may never be repaid, ultimately causing a declaration of bankruptcy and an important loss for the bank. The wallet still offers the crypto currency, and the dog owner can later access the private keys and work with a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed.

We are definitely not advocating this type of unlawful behavior, nevertheless the banks are alert to the possibility and some of them want to shut it down crypto game . This can't happen with debit cards since the banks are never out-of-pocket - the money comes out of your account immediately, and only if you have enough of your money there to start with. We struggle to locate any honesty in the bank's story about curtailing gambling and risk taking. It's interesting that Canadian banks are not jumping on this bandwagon, perhaps realizing that the stated reasons for doing so might be bogus. The fallout from these actions is that investors and people are now aware that bank card companies and banks do have the capability to restrict what you can buy using their credit card. This is simply not how they advertise their cards, and it is likely a shock to most users, that are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all of those other merchants who've established Merchant Agreements with one of these banks. The Exchanges have inked nothing wrong - neither perhaps you have - but fear and greed in the banking industry is causing strange items to happen. This further illustrates their education to which the banking industry feels threatened by Crypto Currencies.

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 where regulations could be implemented throughout the board, and that leaves each country around the globe trying to figure out what to do. China has made a decision to ban CC's, Singapore and Japan embrace them, and a number of other countries remain scratching their heads. What they've in common is that they want to collect taxes on CC investment profits. This is simply not too unlike the early days of digital music, with the web 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 due to their 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 continuing future of fiat and digital currencies? As people around the globe have more frustrated with outrageous bank profits and bank overreach to their lives, there is hope that consumers will be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.

Crypto Currencies and Blockchain technology boost the pressure around the globe to produce a reasonable compromise happen - - this can be a game changer.