The Lloyds banking group has announced that it will no longer allow its customers to purchase bitcoin via credit card. Affecting a number of banks such as Halifax and the Bank of Scotland, MBNA, the group has announced the decision as a precautionary measure for its users preventing them from entering unnecessary debt.
Following on from a handful of American banks including JP Morgan Change and the Bank of America, some have viewed the latest move as a attempt by banking institutions to constrict crypto competition. However by allowing debit card purchases of bitcoin, it seems banks would rather encourage healthy and responsible trading of crypto rather than what had essentially become gambling, taking out large loans and buying on credit.
The main reasons behind the recent blocks of crypto purchases have been irresponsible investing by new investors. AS seen by the fallout which occurred during the current bitcoin price devaluation, many investors were left essentially homeless due to reckless investing which included some taking out 2 mortgages just to gain extra capital to invest into bitcoin. The Lloyds Banking group has reiterated its concerns for customers as it aims to protect users from the volatility of bitcoin markets by preventing bitcoin purchases via credit card.
To conclude, bitcoin purchases have been constricted significantly as banks slowly close their doors to crypto. With a number of huge banks like MBNA and Halifax preventing users from buying bitcoin, which has significantly contributed to the recent price crash bitcoin markets have experienced,. As prices have teetered around the $7000 mark. many are considering what the future holds for bitcoin and every other crypto now that one of the biggest nations, in terms of investment, has been held hostage.