Quote from: bitart on February 05, 2018, 10:41:23 PM

Quote from: PRDAEcontact on February 05, 2018, 02:54:11 PM

"Lloyds Banking Group is reportedly barring its customers from using credit cards to buy bitcoin and other cryptocurrencies."

Does it mean that bitcoin purchase is not welcomed by some banking organisations?

The specific issue is about credit card purchases, debit card and wire transfer is OK for them. Banks are against cryptocurrencies because of various reasons, the reason of this credit card ban is the volatility of the prices. Just imagine that someone buys bitcoin with a credit card at $10,000 and the price drops to $8,000. At the end of the month, the person needs to repay the credit card debt but because of the $2,000 price difference, it's not possible (or not easily possible). Banks don't want to run the risk of this, so Lloyds has decided to ban the crypto related transactions in connection with the credit card. If you use a debit card, you spend your own money, so it's not a real problem for the bank, it's only if you spend their money with the credit card.

Yes.This seems to be a very logical explanation for them to ban using credit cards for bitcoin purchase. Otherwise many would have thought that its just a regular act of banks against bitcoin.If banks continue to allow purchasing of bitcoins using credit cards,then one day they may even collapse.So,it would be even followed by banks all over the world as they would not be wanting to risk their businesses.