Banks across the world have blocked Bitcoin credit card purchases, almost overnight. The reason stated is the concern that customers will accumulate large debts as a result of the value of cryptocurrencies plummeting globally.
It seems a remarkable step for banks worldwide to collectively save customers from financial difficulties on such a large scale. Even the Chinese government is looking at tightening legislation further preventing its people from investing in Bitcoin and other cryptocurrencies.
When have banks ever been known to care about the financial wellbeing of their customers on such a grand scale? It is almost touching, or is it just good financial risk management on the part of banks protecting their own assets? More than likely.
The 2008 global financial crisis resulted in many business closures, which some entrepreneurs have accused banks of changing the payment for loans and removing overdrafts with almost immediate effect. Some business owners claim, they were told at the time, the banks pointed to their agreements and clauses that legally allowed the banks to do so. A group of businessmen and women who lost their companies in the UK under these circumstances are challenging the action of banks through Parliament and contesting the legitimacy of the levels of bonuses received by banking bosses at the time and since.
Bitcoin and other cryptocurrencies are an unregulated part of the finance sector. Cryptocurrencies have been seen as the next evolutionary stage of financial transactions from bartering to metal coins and paper notes to electronic currency we all know as under the banner of cryptocurrencies, of which Bitcoin is one of many.
Source:
https://medium.com/@aalfadhala/the-impacts-of-banks-blocking-bitcoin-credit-card-purchases-bf3e0f250821
