Lloyds Banking Group has banned its customers buying Bitcoin on their credit cards as the value of the cryptocurrency falls sharply.
The bank will no longer allow transactions involving virtual currencies on its credit cards. This includes Lloyds bank, Bank of Scotland and Halifax customers.
The volatility of virtual currencies has put the fear in banks that they might end up paying customer debts. Recent fluctuations in value have been dramatic. Just before Christmas the value of bitcoin was £14465 but is now below £6000.
But if they are not put off by the bank’s drastic action Lloyds Banking Group customers can still be use their debit cards.
According to research by City, University of London, Bitcoin is the biggest cryptocurrency but that it has been steadily losing ground to its closest rivals.
Cryptocurrency is a niche pursuit and I must admit I struggle with the whole concept. Lloyds’ decision seems sensible as credit cards are dangerous as they can lead to huge debts