Barclays go stop crypto shopping wit credit and debit card from June 27
Barclays go block all crypto transactions for Barclaycard credit and debit cards from June 27 to protect customers from get debt because price dey waka anyhow. The bank talk say crypto assets no dey covered by Financial Ombudsman Service or Financial Services Compensation Scheme, e mean say e get risk for card holders wey no fit pay balance if price drop. Dem drop the decision online without detailed press, e follow Barclays past investment for Bitcoin ETFs and blockchain research. Even though some UK banks don do similar things after market crash for 2022, Barclays never talk why dem do am now. Other banks like Nationwide and HSBC start similar restriction for March 2023 when market rough. Traders suppose watch how retail on-ramps and payment dem dey change as one big UK bank close one important card channel.
Bearish
Blocking crypto purchases for credit and debit cards for one big UK bank dey reduce one important retail on-ramp. For short term, lower card-based inflows fit reduce spot buying pressure, wey go put pressure for Bitcoin prices. For longer time, traders fit shift to better ways to fund their buys, but losing one easy entry channel fit make new retail people no join well. Other banks wey do similar move for 2022, e con happen as volatility and trading volumes reduce. Overall, this ban go likely make crypto demand and market stability go down.