Credit card users are in for some bad news. The Lloyds Banking Group Plc has released a statement saying that they would be imposing a ban on their credit card customers that would restrict them from investing in cryptocurrencies. The bank will not be accepting any transactions made by credit card toward purchasing cryptocurrency of any form. The ban is the result of a general fear of the vulnerability of Bitcoin stocks and a fear that customers may find themselves knee deep in losses. All attempts to buy cryptocurrencies 'on debt' will be blocked, although customers are free to purchase using their debit cards. An online list that flags the sellers of Bitcoin will be used to block the online purchase of Bitcoin and other cryptocurrencies.
The bank believes that customers will use their credit cards to buy Bitcoin in hopes of making huge profits. But, in reality, with all the rumors about the collapsing value of Bitcoin and an overdrawn credit card, customers could find themselves in the middle of huge debts. The British government is doubtful about digital currencies in general as they can be manipulated by criminals.
It is no wonder that the bank clamped down on customers who are looking to purchase Bitcoin with their credit cards seeing that the value of digital currencies including Bitcoin has suffered a significant drop. Bitcoin, in particular, has dropped below $8,000. It is one of the biggest losses since 2013.
The general take on cryptocurrency
The Lloyds Banking Group is the first banking giant in the United Kingdom to impose such a ban on its customers. The ban was spurred by warnings from several countries across the globe, including the United States and India. The UK, however, is not the only country to speculate the use of cryptocurrencies. Both Germany and France have their own concerns with Germany demanding a global regulation of digital currencies and France wanting tougher rules.
Social media too has not taken kindly upon cryptocurrencies after users complained about cryptocurrency scams and hoaxes in their newsfeed. In fact, Facebook has banned advertisements for any type of digital currency. Warren Buffet has even predicted a dire ending for cryptocurrencies like Bitcoin.
Critics of cryptocurrency have voiced their disapproval and emphasized that digital currencies are being widely used by criminals to carry out rogue operations. They demand a deep inspection into the activities involving the use of cryptocurrencies such as Bitcoin.