Bitcoin Global News (BGN)
June 12, 2018 -- ADVFN Crypto NewsWire -- This Monday, Wells
Fargo, the third largest bank in the USA, joined the growing
group of banks and financial institutions that are outlawing crypto
payments with their credit cards.
Judging by the current list of
participants in this ban, it seems that all of the financial
industry’s heavy hitters are involved,
including, but not limited to: JP Morgan, Citi Bank, and Capital
One.
The leadership at Wells
Fargo has released
statements justifying this course of action, which
essentially give the impression that the decision was made after a
careful evaluation of the current risks that can be associated with
Cryptocurrency payments and Cryptocurrency investing.
This included the central point
that their decision fits with what the majority of the banking
industry has done so far. The existing list of banks and financial
firms that have banned Cryptocurrencies seems to support Wells
Fargo’s claims.
Even so, the fact that a large part
of the industry supports, is actively piloting, or even uses Crypto
in real-time, seems to refute the same claims. On the other hand,
it would be a mistake not to note that with banks, it is actually
more common for them to ban or merely pilot Blockchain networks, at
this time. If you want a prime example of this, look no further
than the Ripple Network’s partnerships,
so far.
What makes Wells Fargo’s stance
significantly more obscure is that they made it clear that they
would still be looking at the Blockchain industry, as it moves
forward and grows.
The central question then could be
said to be: what is Wells Fargo’s true motivation for doing
this?
Is it actually to just fall in line
with the industry heavyweights? Is it because of multiple risks
related to Blockchain payments, that could damage their existing
business? Is it something else entirely?
Some banks, like the
Toronto-Dominion Bank in Canada, have even claimed banning
customers from buying Crypto with their credit cards, is a
protective measure.
Usually the validation for this is
that each and every Cryptocurrency is too volatile.
At the same time, it is often
suggested that due to the Blockchain’s highly technical nature, it
is not feasible to believe that each and every average consumer can
thoroughly understand the industry.
As projects like Divi, which claims to be the
Blockchain payment network for the people, go live this
year, it will be interesting to see if they can truly normalize
Cryptocurrencies for those who are currently tethered to a fiat
only lifestyle.
Perhaps if these projects succeed,
banks will reverse these bans and perhaps not. Either way, if the
traditional banking industry fails to innovate in response to the
rise of the Blockchain, it is logical to surmise that there will be
more trouble on the horizon for them.
By: BGN Editorial Staff
News:
Wells Fargo
Cryptocurrencies
Blockchain