We have seen a number of businesses and startups over the past year begin issuing Visa-prepaid cards which allow your Bitcoin to be used for payment anywhere that accepts Visa, however over the past week we have heard from many of these card issuers informing users that their cards have been suspended.
First of all we heard from Hong Kong startup TenX:
Dear TenX users,
On 4 Jan 2018, our European card issuer — Wave Crest Holdings Ltd. — received direction from Visa® to to stop payments of all prepaid Visa® debit card programs effective immediately, which our current TenX Card program falls under.
Then soon after we heard from Bitpay, here’s what they had to say in the a statement they made earlier in the week:
Yesterday our European BitPay Card issuer Wave Crest Holdings, Ltd. received direction from Visa® to immediately close all accounts of its prepaid Visa® debit card programs.
The BitPay Prepaid Visa® Debit Card (non-US) was one of these programs, along with other cryptocurrency-related and standard prepaid Visa® debit cards. Unfortunately, Wave Crest was unable to provide us or cardholders with more time to prepare for this change.
Cryptopay a London, UK based Crypto business who have provided online wallets for some time and have just recently offered Prepaid-Visa cards have also been affected by this:
Unfortunately, our card issuer stopped the operation of all Cryptopay prepaid cards starting January 5th, 2018. Stored funds will be retrieved in full to your Cryptopay account after filling and submitting Card Unload Authorisation Form according to this guide. Sorry for all the inconvenience caused, we’re working on the solution!
Bitwala also had this to say on Twitter:
Others have been affected too. The closure of Wave Crest Holdings Ltd has effectively shut down several multi-million dollar startups before they even begun. Both TenX and Cryptopay’s Tokens (TENX,CPAY) have seen their values dive since the news, which was to be expected since both tokens main incentive is to reward token holders with profits from transaction fee’s on the payment cards.
Visa’s statement that the card issuer Wave Crest Holdings was shut down due to ‘Non-compliance’ is a little vague to say the least. Is it mere coincidence that this particular card issuer provides 90% of the Cryptocurrency payment cards on the market?
That should be the ultimate goal, once this has been achieved there really is no stopping the demise of Banking as we know it.
The Traditional Banking System Hates Bitcoin – Fact
The simple matter of the fact is that the traditional Banking system that has ruled society for so long hates Bitcoin and the Crypto space. For a long time they ignored it, then they began declaring it’s death, then they accepted the technology behind it has some merit, but Bitcoin is still bad, then they declared it dead (again), then its a bubble, then a tulip, then a bubble, then it died, bubble, crashed, mania, tulips, bubbles…… and so on.
There is no evidence to suggest that Visa have intentionally closed this particular card issuer as an attack on Bitcoin, but in reality that’s exactly what it will be about. Banks and Crypto will never Gel together, they are opposing forces and therefore it is extremely hard to find long time banking partners for any Business in the Crypto space.
Even no commercial usage of Bitcoin via your own personal bank account is becoming harder. I wrote an article last year about how Barclays froze all my Bank Accounts due to a single transaction relating to Bitcoin. There was no right to appeal, no communication from the bank for a week, no access to any funds at all. Since then it seems many more people are experiencing the same issues, most of which seem to be with Barclays Bank PLC specifically.
Bitcoin Doesn’t Need Banks!
Bitcoins very existence is merely a reaction to the criminal banking cartels that rule our society, Satoshi’s Whitepaper states the following:
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.
And it is this ability that the Banks fear, they are the middle man – that is all they are, no more, no less. Without this requirement their services become obsolete.
Just about all of Bitcoins early adopters were Anarcho Capitalists and Libertarians who could see the possibilities that a technology like Bitcoin could offer the World. As much as these payment cards made spending your Crypto easier, they are not really the long term solution anyway. Using Visa to spend Bitcoin is counter productive, we want to be in a position where merchants can accept Bitcoin and other Cryptocurrencies directly, easily and cheaply.