THELOGICALINDIAN - Virgin Money aloof jumped on the Bitcoin affairs ban but its not as big a accord as abounding are authoritative out
This week, The New York Times has reported that Virgin Money has banned the purchases of cryptocurrencies on its acclaim cards. The account comes as aloof the latest of this array of move to hit the press, with a cardinal of big-name banks additionally banning the acquirement of bitcoin with their acclaim cards – the latest archetype alfresco of Virgin Money actuality Lloyds Bank.
These developments are actuality presented as above setbacks for the cryptocurrency space, apocalyptic of what abounding are adage is the ability of a long-expected pushback from the banking institutions that boss the industry appropriate now.
And the account are advised to abutment this presentation.
In reality, however, things aren’t about as bad as said account would accept readers believe.
Why?
Well, the body of the account is this: banks no best appetite you to be able to buy Bitcoin and added cryptocurrencies application your acclaim card. Note, this doesn’t say that banks no best appetite you to be able to buy Bitcoin and added cryptocurrencies. It says that they don’t appetite you to armamentarium this acquirement with acclaim – acclaim that is (in abounding cases) issued on big-ticket terms, with abounding acclaim agenda holders advantageous 10% absorption or added on balances.
When the amount of an asset is as airy as Bitcoin and added cryptocurrencies are appropriate now, that individuals shouldn’t be affairs it with acclaim is added accepted faculty than annihilation else. Viewed in this light, the move by big banks to ascertain their appearance that annual holders shouldn’t be affairs these assets with banknote they don’t absolutely have, isn’t absolutely account at all.
Mainstream media is quick to jump on this ban as an indicator that Bitcoin’s canicule are numbered, but what they don’t acquaint you that the all-inclusive majority of acclaim agenda issuers won’t acquiesce bodies to use their cards to armamentarium trading accounts with banal brokerages or FX companies either – you know, “legitimate” advance vehicles. This is to advice bodies abstain the risks inherent with trading on credit-based basic and, at the aforementioned time, accomplishing so with a allowance that amplifies the accident of accident what they can’t afford.
Back to Virgin, here’s what a Virgin Money agent said about the move:
So, again, this isn’t Virgin Money adage that its barter can’t buy cryptocurrency. They aloof can’t buy crypto with credit cards. It’s Virgin Money adage that it’s not activity to accommodate its barter the money they crave to buy cryptocurrency.
These are two actual altered things.
While the banks’ ban on crypto acclaim purchases is inconvenient, back you abolish the boilerplate media from the blueprint and appraise what the banks are absolutely saying, it ends up actuality abundant ado about nothing.
Do you buy bitcoin with your acclaim card? What do you accomplish of the latest development? Let us apperceive below!
Images address of VirginMoney/Flickr, Shutterstock
