JP Morgan Chase and Bank of America were first. Now, Capital One and Citi are banning and blocking Bitcoin and cryptocurrency credit card purchases. Why? Many experts in personal finance, investors, old school bankers and economists have agreed that the instability of Bitcoin and its volatility in the market make it a high risk product for users who are not accustomed to invest or obtain a currency whose value It is unstable and changing.
“Currently, supply and demand allow it, but this will not always be the case, and we foresee a centralization of the currency, as well as a deficit in its value after 2020,” said James Fitzgerald, an old-school banker. “Many people will not be able to withstand the instability of Bitcoin and cryptocurrencies, their variable value makes them an acquisition of risk and that is why banks should not allow the purchase of digital currency with credit cards,” he said.
The news was confirmed and officialized by Coinbase in its official social media accounts. And although many people expressed their frustration and disappointment at not being able to acquire cryptocurrencies and their derivatives, others were consistent with the decision of banking institutions and noted the importance of a firm financial education.
“We think that often having more makes us more, but we really need to know where and how to have what we have, so that it becomes useful, not only for us, but for our legacy,” Fitzgerald said.
For their part, the banks have indicated that they have made this decision because many of their users will not be able to comply with the interest payments and defects that this type of purchases generate. In addition, interest and forms of payment can greatly affect the finances of those who risk without seeing.
Coinbase has not ruled on whether other banks will ban the purchase of cryptocurrencies with credit cards. However, this action of the financial companies makes us think, is a struggle for the centralization of money beginning? We’ll see.