It seems that the competition between decentralized and centralized economies is intensifying. The opinions are divided, that’s why many financial institutions have already suspended their activities related to the purchase of cryptocurrency. However, there are some who support them.
Another UK-based bank has announced about banning the purchase of cryptocurrency through credit cards. Virgin Money has headquarters in UK, South Africa and Australia. The reason why the company took this decision is the same as for Lloyds Banking Group. The risk that the buyers will not be able to repay debts is too high.
A spokesperson for Virgin Money argued that “Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase crypto-currencies”.
Note that this policy applies only to credit card holders.
However, the UK Banking Group named Barclays has officially confirmed that customers are free to manage any transaction related to cryptocurrency. A spokeswoman for British institution argued for BBC that “We take precautions to assess affordability before extending credit, flag and prevent any suspicious transactions and also closely monitor credit risk”.
All the credit and debit card holders are able to buy cryptocurrency via Barclays’ services.
We want to remember you that on 4 February 2018, the Banking Group Lloyds has officially announced that credit card holders will not be able to purchase cryptocurrency. A spokeswoman replied for media that “Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies”.
Do you think there will be more banks willing to follow the Lloyds’ decision?