Banks hate Bitcoin

Several banks prohibit the purchase of Bitcoin with a credit card

British and US banks prohibit Bitcoin purchases with credit cards because customers could overtax themselves.

New York / London. Some banks in Great Britain and the USA no longer allow their customers to buy bitcoins and other cryptocurrencies by credit card. They fear that a decline in the price of Bitcoin and Co. could mean that customers can no longer pay their credit card bills.

The British Lloyds bank announced that it would ban its customers from buying cryptocurrency with credit cards, placing itself in line with large US banks such as JP Morgan Chase and Citigroup. The aim of the move is to prevent customers from accumulating large debts when purchasing digital currencies financed by credit, a Lloyd's spokesman said.

Concern is also growing among credit card providers because customers are increasingly using credit cards to finance accounts with relevant online providers. Last week, Mastercard reported that overseas transactions rose 1 percent in the fourth quarter due to cryptocurrency purchases. At that time, Bitcoin rose spectacularly, reaching a preliminary all-time high of nearly $ 20,000 in mid-December. Yesterday, Monday, the largest and most important cryptocurrency fell well below the $ 8,000 mark. At the beginning of the previous year, however, a Bitcoin had only cost $ 1,000.

A spokesman for the Chase Bank said that they are currently not allowing purchases of cryptocurrencies with credit cards due to the high volatility. A Citi spokesman also confirmed a similar measure by his bank, but gave no reasons for it. However, the ban only applies to credit cards; ATM cards can still be used to buy crypto currencies.

China is fighting against crypto sites

Meanwhile, China wants to block all websites on which cryptocurrencies are traded or initial coin offerings (ICOs) are carried out, not only domestic but also foreign ones. This is reported by the "South China Morning Post". What is new about this approach is that foreign websites are also to be covered by the ban.

Previously, China tried to curb cryptocurrency trading by blocking domestic websites. But that did not succeed because many investors switched to foreign sites. (ag./red.)

("Die Presse", print edition, 02/06/2018)