Credit Cards and Crypto Mostly Remain Strangers to Each Other
Cryptocurrency and traditional banking have always been somewhat ‘unhappy bedfellows.’ The exciting world of digital currencies is rapidly replacing the conventional banking model of slow processing, high-interest rates, and fees. Cryptocurrencies allow users to transact instantly from remote locations for a nominal fee.
Credit card companies and banks, concerned about what this new opportunity means for the future, have begun to crack down on exchanges and brokers making it very difficult for them to offer the purchase of Bitcoin by credit card. A few individual banks have even gone so far as to ban the purchase of crypto with their issued credit cards. The worst example of this is in India where the bank of India has introduced a directive that bans all banks in India from providing services to cryptocurrency service providers.
Despite the hostile environment, most credit card issuers still permit crypto transactions, but few exchanges are willing to jump through the necessary hoops to provide such services. Exchanges, knowing the scrutiny and hassle they face in dealing with financial institutions, prefer to stay crypto-only. Popular exchanges such as Binance, Bitmex, and Huobi offer crypto to crypto trading only. The result is users need to buy their Bitcoin elsewhere to get a piece of the action.
The animosity benefits no one. Credit card issuers are missing out on a dynamic and profitable new industry. Exchanges are losing essential customers. Users, left out in the cold without the necessary services to bridge the gap, are the biggest losers.
It is understandable that banks and credit card issuers will fear losing business to cheaper and more efficient cryptocurrencies. In a world where users expect the ability to buy or sell instantly, there is a new game in town and banks and credit card issuers are understandably wary. However, there is no reason why the two industries cannot work in tandem.
Given that cryptocurrencies are gaining recognition from established institutional players, it is in the interest of banks and credit card issuers to find ways to work together with this burgeoning industry. Thankfully, some crypto industry leaders are working hard to integrate these two popular financial services. Rather than a focus on competition and animosity, these companies are working to create harmony between two vital industries. They are developing the infrastructure necessary for a future financial system free of barriers.
Companies such as Jubiter provide a glimmer of hope. The platform is one of the rare brokerages that allows users to purchase Bitcoin and Litecoin using a debit or credit card. Jubiter provides an easy to use platform with a straightforward advantage. The company has invested extensive time, money, and energy in bridging the gap between crypto and fiat providing users with the opportunity to transition or integrate the two financial systems as they see fit. It is an essential step towards bridging the gap between the old economic world and the new. Inclusive services like those provided by Jubiter make crypto investing an activity that is no longer the domain of tech-savvy individuals, but accessible to everyone.