HORSE LOVING BANK Lloyds has banned all purchases of Bitcoin and other cryptocurrencies through its credit cards to prevent customers from bankrupting themselves.
"Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies," the Lloyds Banking Group told Reuters.
While customers of the Group's banks can still buy Bitcoin with their debit cards, they will no longer be able to max-out their credit limits in an attempt to get onboard the cryptocurrency train.
That may be a good thing, however, as that train appears to have left the station and is bouncing up and down on the tracks.
Allow us to explain that tortured metaphor. Cryptocurrency prices are very volatile thanks to a lack of regulation and control so investing in them is a massive risk.
For example, the value of a single Bitcoin surged to around $19,000 in December but has now slumped to around $8,000. That means that people who invested in in mid-December hoping to cash in on the boom could have lost an awful amount of money in mere weeks, if not days.
Dig around on Reddit or various other forums and you'll encounter an all manner of stories about people near bankrupting themselves or taking out hefty loans to try and make bank on Bitcoin. Sadly, that didn't turn out to be the case.
And other emerging cryptocurrencies are not much better with the value of Ripple rising over the Christmas period only to slump dramatically in the new year.
While it might seem like banks are all about taking your money with their savage overdraft fees, they don't want their customers going bankrupt - it's just not good business.
So banning Bitcoin and other cryptocurrency credit card purchases is a shrewd move by Lloyds.
And while we suspect the bank is securing its bottom line rather than being benevolent, the move should at least stop people from easily racking up massive debts and financial woe with some mad crypto investments. µ
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