Telegraph reports that British Lloyd's Banking Group will block any cryptocurrency-related operations with credit cards.
The Company's spokesperson further announces:
"Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies"
The block will not affect debit cards, but credit card users won't be able to perform any transactions involving cryptocurrencies and Bitcoin in particular. Banks fear that people will increase their debts just to try for a quick profit in crypto-related field. And the Lloyd's Group is the first to officially announce that the don't want to finance the impending fallout.
According to the reports, last year thousands of Brits rushed to buy Bitcoin during the lengthy bull-run which sent prices skywards. Even the government made the report at that time to warn people of risks involved and to try and stop people from rushing headlong into the unknown. Now everything points to the events repeating themselves and banks can't sit idle.
Even across the Atlantic three major US banks take the same stance, trying to stop the upcoming tide. JP Morgan Chase & Co., Citigroup Inc. and Bank of America Corp. have take the similar stance and announced that they will or already are blocking cryptocurrency-related transactions made with credit cards. All of this can cause further price drop, because it just became a little more difficult for the common folk to enter the cryptomarket.
It's very likely that other banking institutions will follow the trend in the near future and cut off credit card users from Bitcoin purchases.