HDFC Bank Bans Buying Cryptocurrencies With HDFC Bank Cards
Cryptocurrencies are on a rise and the stakeholders who are an integral part of the crypto universe, are unaffected by the decision taken by the HDFC bank. According to the market capitalization, it is the largest bank and has restricted the usage of prepaid cards along with the debit and credit cards for the purchase of Bitcoin and other cryptocurrencies.
The Reserve Bank of India has issued a cautionary note to the public in order to make them aware of the operational, economic, security, and legal threats associated with the investment. The note was mailed to the individual customers on March 13, 2018.
Retail participation is the prime contributor to the mobility of the prices in the crypto universe whereas the major portion of the institutional money is not yet included in it. With this ban, the economic regulators are sending a clear sign of negativity associated with the cryptocurrency investment.
As per the Founder & CEO of Koinex, which is a prominent cryptocurrency exchange, the restriction of using credit cards for trading the cryptocurrencies is a great initiative. This will discard the chances of non-payment. He further supported the decision by adding that the stock exchange also doesn’t allow the people to complete the transaction using a credit card.
He feels this to be a positive step which will promote the constructive moves to seamlessly create a favorable scenario for the traders.
He further added a statement in favor of the decision taken by the HDFC bank by mentioning the crypto universe to be extremely volatile. Hence, if the value of the currency depletes, it will negatively affect the customers with impending huge balance.
Where the Indian economy is rapidly adapting to the dynamic financial situation, the cryptocurrency is all set to dominate the economy. It is now time for the economists to change the policies in order to enjoy greater returns.