LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

HDFC Bank credit cards banned for Bitcoin purchases, but are cryptocurrencies players worried? Find out

HDFC Bank credit cards banned for Bitcoin purchases: Global banking giants are already moving fast to secure competitive advantage in this space. In February, a Goldman Sachs backed start-up, Circle, acquired Poloniex, a digital token exchange, for $400 million. JP Morgan has created Quorum, an enterprise focused version of Ethereum.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
HDFC Bank credit cards banned for Bitcoin purchases, but are cryptocurrencies players worried? Find out
HDFC Bank credit cards banned for Bitcoin purchases: Even as HDFC Bank banned its customers from using debit, credit and prepaid cards to purchase cryptocurrencies, stakeholders are not unduly bothered by the move. Image source: Reuters
Written By: IANS
Updated: Wed, Mar 14, 2018
03:06 pm
IANS
RELATED NEWS
Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000 Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000
Bitcoin tops $50,000 as it wins more mainstream acceptance Bitcoin tops $50,000 as it wins more mainstream acceptance
Bitcoin breaks above $50,000 for first time ever Bitcoin breaks above $50,000 for first time ever
Bitcoin within a whisker of $50,000 Bitcoin within a whisker of $50,000
Robinhood pauses instant buying of crypto currencies amid volatility Robinhood pauses instant buying of crypto currencies amid volatility

HDFC Bank credit cards banned for Bitcoin purchases: Even as HDFC Bank, India`s largest bank by market capitalisation, banned its customers from using debit, credit and prepaid cards to purchase cryptocurrencies such as Bitcoin, stakeholders in the crypto universe are not unduly bothered by the move. In an email sent out to customers on March 13, the bank noted that "the Reserve Bank of India has also cautioned the public regarding the potential economic, operational, legal and security related risks associated in dealing with such currencies". It is important to remember that price movements in the crypto universe are led primarily by retail participation. Large institutional money is still sitting on the sidelines. Thus, not allowing customers to use their debit and credit cards for crypto transactions is a clear sign that banks and regulators in India are still discouraging investors from entering the crypto universe and maintain a negative bias.

The move has, however, been welcomed as "constructive" by Rahul Raj, Founder & CEO, Koinex, India`s leading cryptocurrency exchange. ``We feel it is a fair move to discourage the use of credit cards for trading in cryptocurrency because the risk of non-payment towards the bank is a pertinent issue. Even the stock market does not allow use of credit cards to transact," Raj told IANS.

Noting that even globally banks have discouraged the use of credit cards for crypto transactions, he added: "We do not see it as a hindrance, as it is a constructive move to sustain a more amicable environment for traders. "The banks lend money on credit cards with the intention of getting it back, but as you know the cryptocurrency ecosystem is very volatile and if prices fall, credit card users could be left with large balances that they may be unable to repay. We want to protect the interest of retail credit card holders leveraging their credit capacity to invest in cyptocurrencies in the hope of making quick money."

Indian residents can still deposit money into their accounts at local exchanges via online banking. In fact, customers can only deposit funds on Koinex via netbanking for buying cryptocurrencies. Each individual has his/her bank account linked to Koinex after a thorough KYC process.

Today, most major exchanges around the world require completion of KYC before being able to buy or sell cryptocurrencies -- this links the very first transactions of most individuals to their real-world identities.

This addresses the issue of anonymity -- it is a common belief that Bitcoin transactions are impossible to track and can aid terrorists, criminals, tax evaders, etc., in avoiding detection by government agencies.

Price volatility will, however, exist in the crypto universe as it is still a relatively new asset class. Further, Bitcoin dominance is still 40 percent and its volatility is one of the main drivers of prices of other crypto currencies.

From a money supply and money demand framework, this volatility can be attributed to the fact that the above money supply rule cannot respond fast enough to changes in money demand, leading to high price fluctuations.

Full text of HDFC Bank letter

Alert: HDFC Bank Credit,Debit and Prepaid Cards not permitted for purchase/trade of Bitcoins, Crypto currencies and virtual currencies

You may be aware of the increasing global apprehensions regarding Bitcoins, Crypto currencies and virtual currencies. The Reserve Bank of India has also cautioned the public regarding the potential economic, operational, legal and security related risks associated in dealing with such currencies.

To ensure our customer’s security, we have decided to not permit usage of HDFC Bank Credit, Debit and Prepaid Cards towards purchase or trading of such Bitcoins, Cryptocurrencies and virtual currencies, on merchants suspected to be dealing in crypto-currency or online foreign exchange trading or both.

We assure you of the best of our service.

Thank you for choosing to bank with HDFC Bank

Indian regulators and financial institutions must welcome the use of blockchain technology and cryptocurrencies. State governments are already adopting blockchain. Andhra Pradesh has become the first state to adopt blockchain in two key departments- road transport and land registrations.

Non-believers in cryptocurrencies have a standard answer: Blockchain is the big idea. Digital currencies are a bubble. It is important to highlight the importance of decentralisation in the world of blockchain and how cryptocurrencies are a result of that since that is what incentivised the coders.

Global banking giants are already moving fast to secure competitive advantage in this space. In February, a Goldman Sachs backed start-up, Circle, acquired Poloniex, a digital token exchange, for $400 million. JP Morgan has created Quorum, an enterprise focused version of Ethereum.

Indian banks and regulators must soon adapt to the changing landscape of finance where cryptocurrencies will play a dominant role. It is high time we see a change in rhetoric from our leading banks and economic policymakers.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
CryptocurrenciesBitcoinHDFC BankCredit CardsBanking & Financial Services
RELATED NEWS
Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000 Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000
Bitcoin tops $50,000 as it wins more mainstream acceptance Bitcoin tops $50,000 as it wins more mainstream acceptance
Bitcoin breaks above $50,000 for first time ever Bitcoin breaks above $50,000 for first time ever
Bitcoin within a whisker of $50,000 Bitcoin within a whisker of $50,000
Robinhood pauses instant buying of crypto currencies amid volatility Robinhood pauses instant buying of crypto currencies amid volatility

LATEST NEWS

CBSE Board Exam 2021 date sheet revised: Class 10 class 12 students check the revised date sheet: Class 12 Maths exam postponed, don't miss to check syllabus, question pattern too

Emma Corrin to star in romantic drama 'Lady Chatterley's Lover'

Kajaria Ceramics share price: Sharekhan retains Buy rating with a revised price target of Rs 1200

MTAR Technologies IPO Allotment Status, Share Subscription: EASIEST WAY! Check online at bseindia.com

Prince Harry reveals racism in UK was the reason for him leaving country with Meghan Markle

Idris Elba's 'Concrete Cowboys' to debut on Netflix in April

Saina Nehwal Biopic Movie Trailer: Super powerful! You will get goosebumps! WATCH - Parineeti Chopra impresses massively

25 per cent DA for central government employs from April? What does this 7th Pay Commission benefit mean, how it helps pensioners? EXPLAINED

Laxmi Organic IPO open date: Rs 600-cr issue to open on March 15; price band set at Rs 129-130

Delhi Budget 2021 LIVE: Top announcements, highlights

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved