Banks move against cryptocurrencies13 February 2018 | 11:41 | FOCUS News Agency
As the main reason for the continuing trend, analysts point to decisions by several banks to ban their customers from buying cryptocurrencies using their credit cards.
Britain’s Lloyds Banking Group made an official statement: ‘We made the decision to not accept credit card transactions involving cryptocurrencies anymore. Thus we will be protecting our credit card holding customers against the risks related to the volatility of digital currency prices.’ The British financial institution made it clear that it was concerned about major losses that its customers would not be able to absorb at all.
JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. likewise announced their readiness to impose restrictions on the purchase of digital currencies using credit cards.
The process is not yet sufficiently analyzed and understood. Due to the absence of national as well as international regulations in the crypto market, banks, as can be expected, are moving against the digital currencies under the pretext of ‘concern’ for their customers. This sets a legal precedent, however, as, tomorrow, banks may decide that the real estate market is also a high-risk one, exposing their customers to the risk of ‘losing money they wouldn’t be able to recoup afterwards.’
Paradoxically, the centralized-type cryptocurrencies are the ones that prove more stable in this situation. Unlike Bitcoin, Еthereum and Ripple, the OneCoin digital currency, created by the Bulgarian woman Ruzha Ignatova, seems much less volatile, exactly because of its inherent ‘flaw’ of being centralized and for the moment operating solely within the OneLife system.
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