Starting on Monday, Lloyds Bank, Bank of Scotland, Halifax and MBNA customers will not be able to purchase Bitcoin and other crypto-currencies on their credit card. However, they will still be able to purchase the currency on their debit card.
Lloyds are concerned that their customers would not be able to afford the bill and therefore the banks would have to pay for unpaid debts. The price of bitcoins is falling, so if it continues, banks are worried customers will not be able to pay for it. Which is why the sudden stopping of credit card payments.
What is Bitcoin?
Bitcoin was the first cryptocurrency to come about, it is a form of digital money that used encryption to secure transactions and control the creation of new units.
The reason bitcoin first came about was because people wanted a currency which was not controlled by government or businesses, and a currency which you could trade freely between countries without any costs or any identities being shown.
They are not like the change in your purse or wallet, you cannot see them or physically touch them. They are a line of code in which you purchase and exchange, in some cases you can buy goods and services with this type of currency.
Why is Bitcoin a concern?
Bitcoin can be a dangerous game to play, it is a currency based online and so cyber criminals can work better through this form of payment process. With the currency also being untraceable, it means that it is a great form of transaction for people like drug dealers and people who are money laundering.
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