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 usage of charge cards to purchase crypto currencies (CC's). The stated reasons are impossible to think - like trying to curtail money laundering, gambling, and protecting forex the retail investor from excessive risk. Interestingly, the banks allows bank card purchases, which makes it clear that the only risks being protected are their own. With a credit card you are able to gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you wish, however, many banks and credit card companies want to prohibit you from employing their facilities to purchase crypto currencies? There must be some believable reasons, and they're NOT the reasons stated. A very important factor that banks are scared of is how difficult it should be to confiscate CC holdings when the credit card holder defaults on payment. It'd be more difficult than re-possessing a home or even a car. A crypto wallet's private keys could be placed on a memory stick or a piece of paper and easily removed from the nation, with little if any trace of its whereabouts. There can be a high value in some crypto wallets, and the charge card debt may never be repaid, ultimately causing a declaration of bankruptcy and a substantial 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're most certainly not advocating this kind of unlawful behavior, however the banks are alert to the chance and some of them want to shut it down. This can't happen with debit cards whilst the banks are never out-of-pocket - the amount of money comes out of your account immediately, and only if you have 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 are not jumping with 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 conscious that bank card companies and banks really do have the capability to restrict what you can get using their credit card. This is simply not how they advertise their cards, and it is probable a shock to many users, who are quite used to deciding for themselves what they'll purchase, especially from CC Exchanges and all the other merchants who have established Merchant Agreements with your banks. The Exchanges did nothing wrong - neither have you - 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 is little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world has no central controlling body where regulations can be implemented over the board, and that leaves each country around the world trying to figure out what to do. China has made a decision to ban CC's, Singapore and Japan embrace them, and many other countries are still scratching their heads. What they have in common is that they wish to collect taxes on CC investment profits. This isn't too unlike early days of digital music, with the net 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 future of fiat and digital currencies? As people all over the world have more completely fed up with
outrageous bank profits and bank overreach within their lives, there's hope that consumers will be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.