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Lloyds bans crypto currency purchase using credit cards

Lloyds bans crypto currency purchase using credit cards

Britain's biggest bank Lloyds has decided to prohibit its customers from using credit cards to invest in Bitcoin. Lloyds will tell its nine million customers from using credit cards to buy the digital currency as its value has plummeted by more than half in just two months.

The price of Bitcoins which was 14,000 in December fell to a record low in January after the crypto currency crackdown in South Korea. Lloyds management fear that they could end up running huge losses. So credit card customers of Lloyds which includes Halifax, Bank of Scotland and MBNA would be blocked from buying Bitcoin online through blacklist which will identify the sellers. But the digital currencies could be purchased with debit cards, The Telegraph reported.

"Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we would not be accepting credit card transactions that involve the purchase of crypto currency."

British Prime Minister, Theresa May said that Britain would evaluate the possible risks associated with Bitcoins because it is being used by criminals for carrying out nefarious activities. Many investors are now looking for alternatives as the future of Bitcoin is still uncertain, and they are now thinking of putting their money in Gold instead as some European gold traders have reported a "five-fold increase" in demand.

Wall Street veteran Peter Boockvar has warned of an "epic crash" which might result in sell-off of 90 percent value of Bitcoins. US Billionaire Warren Buffet has also voiced his concern warning that Bitcoin boom might "come to a bad ending".

JP Morgan Chase, Bank of America and Citigroup have also taken such step earlier announcing that they won't be processing customers to buy cryptocurrency purchases using credit cards.

Citigroup said in a statement that it has "decided to no longer permit cryptocurrency purchases using credit cards. We will continue to review our policy as this market evolves."

The Bitcoin is currently trading at $8,036.91 while Ethereum and Ripple are priced $824.78 and 0.801312 with the market capitalization of $384,153,327,837.