Lloyds bank has made a decision to disallow purchasing bitcoins for its customers using credit cards as concerns arise it could find itself indebted in view of virtual currency’s value plunge.
The company-colossus is deemed to be Britain’s first organization that disallowed buying cryptocurrencies for its credit card clients, as bitcoin has rapidly gone down in the past months losing over 50% of its value.
The fall of the number one coin has raised worries that those who buy it recurring to borrowed money will end up largely indebted in case of a continued plunge of the cryptocurrency.
Lots of Brits are believed to have purchased bitcoin as it made its way up, almost hitting $20,000 at the end of last year. At the time when Lloyds decision was reported yesterday, the cryptocoin stood at around $8,000.
This action comes after alarm signals from South Korea’s, China’s, Russia’s, and other countries’ regulators.
Calls for global regulation of the virtual currency were heard from Bundesbank of Germany, while French finance minister urged to tighten rules for all cryptocoins. Recently Warren Buffett excluded the possibility of going into cryptocurrencies, saying that the Bitcoin craze will come to a bad ending.