Barclays, one of the largest financial institutions in the United Kingdom, has announced that it will be blocking all cryptocurrency transactions on its bank cards starting on June 27th. The decision comes as a result of the volatile nature of cryptocurrencies and the lack of insurance coverage for these digital assets.
The bank stated in a recent post that customers will no longer be able to use their Barclaycard for any cryptocurrency transactions due to the risks involved. Barclays expressed concerns that a drop in the price of cryptocurrencies could potentially lead customers into debt that they may not be able to repay. Additionally, since cryptocurrencies are not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme, there is no protection for customers in case something goes wrong with a crypto purchase.
Despite this ban on crypto assets, reports have surfaced indicating that Barclays has invested significant amounts of money into IBIT, BlackRock’s Bitcoin exchange-traded fund (ETF). The bank disclosed to the U.S. Securities and Exchange Commission that it holds over 2.4 million shares of IBIT, valued at nearly $137 million. IBIT is currently the largest BTC-based ETF by trading volume and is trading at 60.98 at the time of writing, with a 1.5% increase over the last 24 hours.
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As the financial landscape continues to evolve, it is important for consumers to stay informed about the risks and benefits associated with digital assets. While Barclays may have chosen to block crypto transactions on its bank cards, the interest and investment in cryptocurrencies remain strong in the market.
Stay tuned for more updates and analysis on the crypto market from The Daily Hodl.
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