From the start of 2018, every week, we come across the ban imposing buzz. Now the Citibank India also joined the lead of the UK and US banking group for restricting Bitcoin purchases via credit and debit cards.
CitiBank India Bans Bitcoin Purchase
Today morning, CitiBank India sent an email informing its cardholders about restricting purchases on cryptocurrencies through credit and debit cards.
According to Quartz India reports, CitiBank India passed an informational email to its customers on Feb 13. The report explains as follows;
“Given concerns, both globally and locally, including from the Reserve Bank of India. Thus, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection. And security-related risks associated in dealing with bitcoins, cryptocurrencies, and virtual currencies. CitiBank India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies and virtual currencies”.
Arun Jaitley, the finance minister, said in his budget speech that government does not consider cryptocurrency trading. And also will take all actions to eradicate the use of these crypto assets in financing activities.
However, the cryptocurrencies are stored in digital format making them vulnerable to hacking, loss of password and malware attack which may also result in permanent loss of money.
The RBI clarifies that it has not provided any license to any company to operate schemes or deals with Bitcoin.
Different bank to consider the same league
The other global banking groups such as JP Morgan Chase and Bank of America, and also followed by credit card bans by Lloyds Banking Group and Virgin Money. It seems that CitiBank in India following an American parent in banning cryptocurrency purchases using credit and debit cards.