JP Morgan Chase Bank Bans Credit Card Purchase from Bitcoin
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JP Morgan Chase Bank of America and Citigroup banned Cryptocurrency purchases with credit cards. Customers of JP Morgan Chase Bank of America and Citigroup cannot buy Cryptocurrencies with credit cards. JP Morgan Chase had confirmed to CNBC that they were allowing credit card purchases of Cryptocurrencies. Bank of America and Citigroup said they were reviewing their policies on credit card purchases of crypto, however JP Morgan Chase's policies have seen a quick reversal as a spokesman from the bank told CNBC, “at this time we are processing Cryptocurrency purchases using credit cards due to the volatility and risk involved.” First of all banks are as always in it to make money and there's a difference for those who do not know. There was a difference between credit and debit credit, credit is based on debt and debit is money that you have directly in your bank account, so debit transfers, bank transfers and wire transfer are still perfectly fine with all these things. They have stopped credit because it is done with a debt and there's a huge amount of default when it comes to debt and people defaulting on it. They said what's stopping, someone who has a huge line of credit from buying half a million dollars worth of Cryptocurrencies and then simply saying that they can't be paid back and then defaulting on their Cryptocurrencies who has to fit the bill. It is then the bank but when we debit which comes directly from our account, when we do a wire transfer which also comes directly from our account showing that we have the money. There is no problem because we are directly paying for what we are purchasing as opposed to doing it through credit. To be fair our markets are highly volatile.
There are a lot of people who are taking out mortgages to buy crypto currencies. This is what happened in November and December. There are a lot of people doing this, taking liens on their homes, etc. Imagine what happens, should prices fall down and then the bank is left? This is not something to be afraid of as always we should do our own research. It is very important in this world that we live in. Bank of Russia said that they will allow crypto mining within the country but they propose miners sell their coins overseas. The Bank of Russia also mentioned that it will allow Cryptocurrency mining in the country given tax control and reporting considerations. However the Central Bank also proposes for Crypton miners to sell their coins overseas which will still oblige them to pay taxes. Obviously they're not going to get out of paying taxes especially in Russia. So the entire point of this is a lot of people said they were kind of confused as to why they said crypto mining was ok but people have to sell their coins overseas. One of the major things appears that we can mine within the country which will then make the country a bit richer as these operations continue to expand and more money then goes into the country but as we sell to the country. It has to do with taking money from outside countries and pushing it into the Russian economy. That’s the long and short of it. So it does make sense in the long run. If countries wanted to ban this they would have done so. Already Russia was one of those the countries that kept on saying they were going to ban it but Russian politics, they are very firm. They do not give “maybe” answers so when they said that they were not going to outright ban this it was pretty obvious that they were going to allow it, but they need to be under full control.