Cryptocurrency has been a hot new form of investment, but it hasn’t been without its problems as traditional financial institutions have limited ways to purchase and obtain it. Methods that people could use to buy bitcoin with a credit card have been completely blocked by Wells Fargo recently. This decision has also been made by JP Morgan Chase, Citigroup, Bank of America and other banks across the world. The banks have cited a LendEDU study backing their claim, stating that 18% of cryptocurrency purchasers had been bought on credit and that 22% could not pay back their balance later on after purchasing the currency. The banks still allow the purchase through methods such as debit cards or bank transfers, but this is an interesting change considering other volatile forms of investment like stocks are still slowed to be purchased with credit cards.
Apple has also taken drastic measures against cryptocurrency, placing rules that block all mining apps (Unless if the app mines the currency on the cloud) and only allow wallets that are participating in Apple’s developer program; These new measures also block “background mining” that some apps have been using in place of ads. The tech giant cites that this is to avoid huge hacks such as Coinrail’s and protect cryptocurrency users. Ubuntu has also disallowed any crypto-mining apps on its store. Back to Apple though, their policies also don’t allow any apps that offer cryptocurrency in exchange for actions such as downloading apps or viewing apps. These new policies don’t offer any protection against websites with background mining though.
Fortunately, not every bank and company is against cryptocurrency, and there is a good amount of banks that are cryptofriendly as some countries and banks will close your account if it is involved in cryptocurrency trading. The first bank that will be mentioned is Germany’s digital bank, Fidor Bank, that is currently only available in Germany but plans to expand to all of Europe when possible. The company has teamed up with Kraken in order to develop a functioning “cryptocurrency bank account” that works just like any other bank account but uses cryptocurrency instead of regular currency. Another bank offering services like this is Change Bank, which offers a crypto wallet linked to a debit card and also offers insurance and lending with cryptocurrency. Change also allows user to invest with this wallet which allows anyone to start a stock portfolio in seconds.
Worldcore is a Czech based bank that focuses on removing the restrictions of cryptocurrency and allows it to interact like normal cash. The features it boasts include accepting payments directly to the wallet and account, depositing and withdrawing with supported cryptocurrencies and normal currencies and allowing funds to be withdrawn with a debit card as cash at any ATM. Bigger banks and financial institutions have also followed suit in this. Recently, American Express has partnered with a crpytowallet to allow customers to purchase the currency with a credit or debit card, something that other large institutions are shying away from.