How "crypto shirts" Currencies Work - A Brief Overview Of forex shirts, The news 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 think - like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Interestingly, the banks enables debit card purchases, which makes it clear that the only real risks being protected are their own. With a credit card you can gamble at a casino, buy guns, drugs, alcohol, pornography, everything and anything you would like, but some banks and bank card companies want to prohibit you from using their facilities to buy crypto currencies? There should be some believable reasons, and they are NOT the reasons stated. A very important factor that banks are afraid of is how difficult it would be to confiscate CC holdings when the credit card holder defaults on payment. It would become more difficult than re-possessing a residence or a car. A crypto wallet's private keys may be placed on a memory stick or a piece of paper and easily removed from the united states, with minimum trace of its whereabouts. There can be quite a high value in certain crypto wallets, and the charge card debt may never be repaid, leading to a declaration of bankruptcy and a significant loss for the bank. The wallet still offers the crypto currency, and the master 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're definitely not advocating this sort of unlawful behavior, but the banks are alert to the chance and a number of them want to shut it down. This can't happen with debit cards whilst the banks are never out-of-pocket - the cash comes from the account immediately, and only when 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 with this bandwagon, perhaps realizing that the stated reasons for doing so can be bogus. The fallout from these actions is that investors and individuals are now aware that bank card companies and banks really do have the capacity to restrict what you can aquire making use of their credit card. This isn't how they advertise their cards, and it is likely a shock to the crypto majority of users, that are quite used to deciding for themselves what they will purchase, especially from CC Exchanges and all of those other merchants who have established Merchant Agreements with your banks. The Exchanges have inked 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 which the banking industry feels threatened by Crypto Currencies. At this time there's little cooperation, trust, or understanding involving the fiat money world and the CC world. The CC world does not have any central controlling body where regulations may be implemented across the board, and that leaves each country around the globe trying to determine what to do. China has chose to ban CC's, Singapore and Japan embrace them, and a number of other countries are still scratching their heads. What they've in accordance is that they want to collect taxes on CC investment profits. This is not too unlike the first 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 due to their 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 continuing future of fiat and digital currencies? As people around the
world get more frustrated with outrageous bank profits and bank overreach into their lives, there is hope that consumers will undoubtedly be regarded with respect and not be forever saddled with high costs and unwarranted restrictions.