Banks in Canada ban the ability to purchase cryptocurrency

Unfortunately, it looks like another country has decided to crack down some on cryptocurrencies. Some Canadian banks have decided to ban the use of credit cards and debit cards thus restricting the buying traders are able to do.

And this has been confirmed via a email to coin desk:

“I can confirm that we no longer allow the purchase of cryptocurrencies via Interac Online Payments or by using a retail consumer Mastercard-branded credit or debit card. This decision was made due to the volatile nature of cryptocurrencies, and so to better protect the security of our clients and the bank.”

That is very sad because it limits the adoption in Canada and restricts the supply. But like most things banning it doesn't really help.

A peer to peer exchange website called local bitcoins now has taken off in Canadian volume.

That is some impressive growth. But still this hampers the overall growth in the Canadian cryptocurrency market.

Although there are some positives to this buying ban in Canada - though admittedly limited.

The major upside of this is the ban on credit card purchases. I've always been afraid of people taking out massive loans to purchase cryptocurrency in the hopes of getting rich quickly. But with the ban on Canadian credit cards it's no longer an issue. Ideally, all countries would ban credit card purchasing on cryptos.

Debt, margin trading, and under capitalized firms are often what lead to massive depressions within countries and can cause world wide recessions. The housing market crash would not have been nearly as bad if it was not financed with debt and massive margin trades. In fact, for every one dollar someone had in a mortgage, there was nearly $50 of side bets and gamblining on that $1 in the mortgage. That is how a major recession can start. And I'd like to avoid that with cryptocurrency.

Keeping cryptocurrencies reputation clean and undamaged is paramount to it's greater success. Thus, as a community, we need to strive to encourage people to make prudent investment choices, spend time researching cryptos before investing, and routing out the scam coins. The vast majority of the public isn't going to invest in a market place rippled with frauds and scams. Just like, if crypto causes a massive market crash due to debt, people will stop investing.

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