Crypto News Flash #95: Citibank India Bans Its Credit & Debit Cards For Crypto Purchases Advocating Potential Risk !!
Cryptocurrencies have become a 'hot' investment type for average investors because of the potential gains it represents. Moreover many early investors have become Millionaires/Billionaires out of the investments they made in cryptocurrencies. Under this influence, many new investors also wants to invest in cryptocurrencies and wants to earn the same returns in a short period of time even though they're aware of the high volatility of Crypto market.
Now, the first step to invest in crypto involves converting Fiat into crypto, which basically means an investor have to send his fiat money to the crypto exchange via Bank/Card Transfers. But what if these Banks have banned their users to use their Debit/Credit cards to buy cryptocurrencies?
Well, that's what is happening right now.
Many banks and Financial Institutions like JP Morgan Chase, Lloyd Banking Group have already banned their user's Debit/Credit so that they won't be able to buy cryptocurrencies though any exchange but now another Banking Group have been added into that list.
This new Bank is Citibank India.
Citibank is a subsidiary of Citi Group, a Multinational Financial Institution. Recently, Citibank officials have declared that they're disabling their Debit/Credit cards for the purchase of any cryptocurrencies. As per this Source, the copy of email forwarded by Citibank India are as follows:
“Given concerns, both globally and locally, including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection, and security-related risks associated in dealing with bitcoins, cryptocurrencies, and virtual currencies, Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies and virtual currencies.”
Well this information came after few days of Indian Budget Announcement where Indian Finance Minister have prohibited people to use Bitcoin as a means of Payment within Indian domestic Borders.
Although, India is pretty indecisive over the legal status of Cryptocurrencies within their Nation. But still many people calling Bitcoin a ponzi scheme is enough for Banks to ban its buy via their Debit/Credit Cards.
Let's see what new 'ban' we can face in near future regarding the use/buying/selling of cryptocurrencies.
Thanks for reading ....!!
I really hate reading news like this.
I see that some banks only ban credit card purchases which is ok I guess as long as their customers can use debit cards but banning both credit and debit card crypto purchases is really not good.