SBI does not ban cryptocurrency purchase with its credit cards

But at the same time, the bank warns about potential risks of such action in an official statement
21 February 2018   209

Second largest credit card issuer in India, SBI, has made an official statement concerning the operations with the virtual currencies. The statement warns the clients of the bank of the potential financial risks involved with the purchase of any virtual currency. SBI with a client base of approximately 5 million people didn’t take extreme measures, such as Citi Bank in India.

Given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with crypto-currencies and virtual currencies


SBI Notice quotation

Further, in the notice it says that Reserve Bank of India issued a set of recommendations and guidelines to financial institutions and public with an emphasis that no entity in India was given a permission or any kind of legislation to provide services dealing with cryptocurrencies and the respective schemes.

The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.


Arun Jaitley

Finance Minister of India

India’s government is trying to formulate a regulatory basis for a still shadow area of virtual currencies.

We have actually decided which regulator will do what and the committee should come out with the regulations very quickly.


Ajay Tyagi

The Chairman of the Department of Economic Affairs

20 % of University Students gain Cryptocurrency with Aid

The Student Loan Report along with Pollfish interviewed 1,000 university students with related loan debt
23 March 2018   157

It took them for 4 days to collect the data (from March, 16 till March, 20 of this year). All the participants were to ask the following question: Have you ever use student loan money to invest in cryptocurrencies like bitcoin?

The results were remarkable. The poll revealed that 21,2  % of current students with the loan debt have used aid money in order to fund a cryptocurrency investment. So, over one-fifth answered in the affirmative.

Drew Cloud, the leader of the Student Loan Report, clarified that the younger Americans are more active investors as they are rather optimistic about cryptocurrency. Therefore the students want to get involved in this subject in any way possible. Drew Cloud sincerely thought the percentage would be lower. He considers that any college student's budget is thin and limited, therefore some extra money may be used on rest, groceries, or books.

The Student Loan Report approved: student loan debtors would be to pull off such a manipulation as they are given their remaining loans to be used on “living expenses”. From time to time they borrow more than they end up needing for studies. College debtors`spending of the money is not officially tracked and this allows the leftover means to be spent in the way preferred by the student. Another important factor is loan debt payments often do not occur until after graduation, and generally 6 months after.

Mr. Cloud claimed that cryptocurrency was the most prevalent investment of 2017. The young Americans consider that digital money is a savvy way to spend their refund checks. Some students even suggest that they would be able to quickly pay their debts off (because “not long ago every virtual currency was experiencing seemingly unstoppable growth”).

A significant shortcoming from the survey are data concerning how much the average student of the university spent of their financial aid on cryptocurrency. It also would have been interesting to know what types of digital means students favoured.