Lloyds Bank Bans Buying Cryptocurrency with Credit Card
Bad news for UK-citizens! An important financial institution is cautious against the possible negative consequences of cryptocurrency trading.
We are talking about the giant bank chain, named Lloyds Banking Group. They have forbidden customers who hold Lloyds’ credit cards to borrow money for the purchase of cryptocurrency. The reason is not to get into the impossibility of paying the debts and keeping the bank’s balance on the minus.
Today, 5 February 2018 the Bitcoin’s price fluctuates between 7.800 USD and 8.100 USD. The risk that investments made in crypto system will be successful or the results will appear too late is very high. That’s why accepting loans can be unsuccessful for the bank.
The announcement was made on 4 February 2018 by a spokeswoman of the Lloyds Banking Group, “Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies”.
Last week, Facebook has banned the cryptocurrency ads, arguing that “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs, and cryptocurrencies that are not currently operating in good faith.“.
France had even planned a G20 summit this year to determine the future of cryptocurrency usage, calling the Bitcoin “the tulip of 21th century”.
Numerous analysts criticize cryptocurrency system relate to their use by criminals and hackers.
Also, at the beginning of February 2018, one of the most influential businessmen around the world, Warren Buffet, warned the population about Bitcoin’s capping soon. This announcement was probably another beginning of the uprisings.
The Lloyds Banking Group’s regulation is going to be implemented by several banks of major importance throughout the world. Can this be the main reason why cryptocurrencies’ prices are decreasing?
What do you think about Lloyds Banking Group’s ban?