Reports reaching us lately shows that various banks around the world have been showing tendency to oppose cryptocurrency from taking over the economy.
The latest of them all is that of Queensland bank, whose clients were seen tapping into equity loans to buy cryptocurrency. Although, it is not advisable to do so, but we are sure that the banks really wants to see the downfall of cryptocurrency, so they can control the financial sector of the economy.
Bank of Queensland finally bans crypto buying after seeing that their customers are now fond of borrowing money from the bank with the intention of buying Bitcoin and other cryptocurrencies. Normally, they are supposed to invest it in something that is trustworthy and reliable, instead of investing it in crypto that has no specific or actual time for return. The banks management representative said in an interview, that it would be better for the clients to use the home equity loans to buy houses and cars rather than investing in Bitcoin or other alternative coins. To this effect, the bank has stopped giving loans to people who intend to invest in digital currency.
Looking at this decision critically, from the business perspective, I think it’s a really cool idea, but the bigger question is, how do they plan to enforce this ban? Or are they planning to ban loan giving as well? Since the bank officials will not be around to see how their clients spend the money collected.
It’s going to be a great challenge for the bank but we just hope the bank comes up with a better method to tackle this issue. Moreover, there have been cases of lenders discouraging borrowers and mortgage brokers from getting involved in cryptocurrency.