Banks, by their very nature, face major challenges in adopting decentralized digital currencies. As all the banks are centralized.
According to a recently published reddit article that is likely to block financial transactions for the Crypto market by the world’s seventh largest bank, HSBC.
HSBC, the abbreviation for Hong Kong and Shanghai Banking Services.
A group of United banks with each other, including a British bank and HSBC is one of the oldest international banks since its establishment in 1865.
HSBC, the world’s seventh-largest bank, may suspend financial transactions due to the uncertainty of currency controls and volatility.
The topic was published by the user BlockHeart357 on reddit, which tells how he bought some cryptocurries earlier through the bank without any forms. To face a ban on his credit card when trying to buy again.
He also tells about his conversation with the customer service agent of the bank, which stated the following:
I have come to find out that HSBC prohibits Crypto transactions on all bank cards.
When I spoke with the customer service agent, he pointed to the volatile nature of the cryptocurrency and that the bank had blocked my cards to avoid dealing with them again.
Do I move and open a new bank account? I think I will face a similar issue again.
Or do I go to the ATM to buy Bitcoin? Which I would pay a high percentage of what I consider a theft.
So as to wait for HSBC’s official confirmation of the prohibition of cryptocurrencies that it sees as volatile and unstable.
As a conclusion to this news, we find that banks and financial institutions still face a dilemma in the adoption of cryptocurrencies for the difficulty of controlling prices and their centralization and the difficulty of identifying the owners.