Lloyds Bank, one of the UK’s largest retail banks has announced it will be blocking all purchases of Bitcoin and other Cryptocurrencies using their Credit Card services. This will take effect as of today, Monday 5th February 2018.
The announcement comes as fear of the currently slipping Cryptocurrency markets may result in large amounts of Credit being unpaid due to excessive losses in Cryptocurrency speculation by its customers.
Lloyds Banking Group will on Monday tell its 9 million credit card customers that it will block any attempts to buy Bitcoin after the digital currency lost more than half its value in just two months. – The Telegraph
This news comes as no surprise and although this policy may now be official people have been reporting issues when trying to purchase or sell Cryptocurrency using British banks. Only a few months ago we reported how our own accounts with another leading British bank, Barclays, were frozen due to Cryptocurrency related transactions, all linked personal accounts were also frozen leaving no access to any fiat funds for an entire week.
It was inevitable that the traditional banking institutions would restrict usage of their services in relation to Cryptocurrencies, after all Cryptocurrency does not benefit them in any way, in fact the entire movement is based on the idea of removing the middle man from wealth transfers, i.e The Banks. Along with the fact that the markets have become highly speculative and thus increasingly risky, lenders want to avoid huge losses due to unpaid debts of failed investors.
This news won’t help the increasingly bearish market that appears to be forming in Cryptocurrency, with the value of Bitcoin dropping well over 60% since it’s high in December of $20,000 it would seem hibernation is finally over, fow how long is anyone’s guess.