UK Banking Giant Lloyds Bank Ban Bitcoin Purchases on Credit Cards

The incessant drop off of Bitcoin price has led UK banking giant Lloyds Bank to restrict its clients from purchasing Bitcoins via their credit cards. This Banking group fears cryptocurrency’s fluctuating value could leave it with huge debt.

Ban Pressures are Mounting on Lloyd’s credit card customers

As the ban announcement rolled out on Monday, Bitcoin has slumped in value (worth $6,628.37). The Lloyds financial giant is a group of MBNA, Halifax, and Bank of Scotland counting almost millions of UK customers. According to a source, this move thought to be the first in the UK to ban credit cards customers from buying cryptocurrencies. However, the ban covers only nine million credit card customers of the banking group.

“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA. We do not accept credit card transactions involving the purchase of cryptocurrencies”, said a spokeswoman for the banking group.

Lloyds Banking Group feels people, buying Bitcoin to make a profit if its value rises but incur debts if it declines. Moreover, end up footing the bill for unpaid debts.

The Lloyds spokeswoman told BBC:

“We continually review our products as well as procedures and this is part of that”.

Cryptocurrency bans and sentiments

Beside Lloyds group, other fintech institutions including Bank of America, and JPMorgan are planning to block cryptocurrency purchases through credit cards.  According to Fortune, the top five credit card issuers in the US could have now announced or implemented bans; those institutions are, Citigroup, Discover, Capital One, Bank of America and JPMorgan.

In addition to fintech industry, such bans are snipping around the world of social media. Accordingly, Facebook’s CEO Mark Zukerburg has recently announced sever ban on all Ads relating to cryptocurrency and ICOs on Facebook.

Let’s get connected on Telegram or Twitter  for upcoming updates on Lloyds.

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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