Today in the news, Capital One is under a lot of scrutiny due to their stance on cryptocurrencies they just adopted. Capital One users have found out this week that the banks credit division will no longer work on cryptocurrency exchanges. Their explanation as to why they have taken this stance is the growing number of fraudulent charges and stolen card information used to purchase cryptocurrencies. While many people are angered by this decision and their methods made it worse in which they did not notify their customers and just left their transactions pending and never confirmed. While many are angered by the new stance on cryptocurrencies, many claim this is normal proceedings as credit cards cannot be used to purchase stock.
This is due to credit cards having the insurance base where if a fraudulent charge is used it will be refunded. This has been a growing issue in cryptocurrency exchanges so they have taken the stance to just ban all trading with current credit cards. There are many issues surrounding cryptocurrency exchanges but that is understandable as this is still new to the world and will continue to start working out all the kinks in the systems.
This was for credit cards. Please do your research.
Credit cards present a lending risk for banks. If you lose all your money in crypto you can't pay the bank back. I have not heard of CapitalOne banning regular transactions at all.
Thank you for that clarification, I have since corrected the post.
Dear ricjames,
Imo we do not have to worry that much bout it cause cryptos highly probable will survive these "resistances" coming from banks and moreover some governments.
Nevertheless, I think that countries will have their own coins (working together with banks). There will not be only fiat or crypto - both types will be used and in many different forms (kind of like now).
Yours truly,
Gandalf The White