How "crypto shirts" Currencies Work - A Brief Overview Of forex shirts, The headlines this week is that several banks in the USA and the UK have banned the use of charge cards to purchase crypto currencies (CC's). The stated reasons are impossible to trust - like trying 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 only real risks being protected are their own. With a charge card you are able to gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you would like, however many banks and charge card companies want to prohibit you from using their facilities to buy crypto currencies? There must be some believable reasons, and they're NOT the reason why stated. One thing that banks are afraid of is how difficult it should be to confiscate CC holdings when the credit card holder defaults on payment. It would be much more difficult than re-possessing a residence or even a car. A crypto wallet's private keys can be placed on a memory stick or a piece of paper and easily taken off the united states, with minimum trace of its whereabouts. There can be quite a high value in a few crypto wallets, and the charge card debt may never be repaid, ultimately causing a declaration of bankruptcy and a significant loss for the bank. The wallet still contains the crypto currency, and the owner can later access the private keys and make use of a local CC Exchange in a foreign country to convert and pocket the money. A nefarious scenario indeed. We are most certainly not advocating this type of unlawful behavior, however the banks are aware of the likelihood and a number of them wish to shut it down. This can't happen with debit cards as the banks are never out-of-pocket - the cash comes from the account immediately, and only if there is enough of your cash there to begin with. We struggle to find any honesty in the bank's story about curtailing gambling and risk taking. It's interesting that Canadian banks aren't 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 consumers are now aware that credit card companies and banks do have the ability to restrict what you can purchase using their credit card. This is simply not how they advertise their cards, and it is probable a shock to the majority of users, who are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and the rest of the merchants who've established Merchant Agreements with these banks. The Exchanges have inked nothing wrong - neither maybe you have - but fear and greed in the banking industry is causing strange things to happen. This further illustrates their education to that the banking industry feels threatened by Crypto Currencies. At this point there's little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world has no central controlling body where regulations may be implemented over the board, and that leaves each country all over the world trying to figure out what things to do. China has made a decision to ban CC's, Singapore and Japan embrace them, and a number of other crypto countries continue to be scratching their heads. What they have in common is that they would like to collect taxes on CC investment profits. This is not too unlike 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 a little something for his or her 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 ongoing future of fiat and digital currencies? As people around the globe
have more completely fed up with outrageous bank profits and bank overreach to their lives, there's hope that consumers will undoubtedly be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.