Natwest is the latest UK bank to enforce limits on its customers’ dealings with crypto companies.
Limitations on crypto payments
Using the rational of protecting its customers against crypto scams and to “help protect customers losing life changing sums of money”, the UK bank is the latest to join the list of banks that have either banned or severely curtailed their customers’ ability to transact in cryptocurrencies.
The new limitations prevent a customer of the bank from sending more than £1,000 a day to a crypto exchange, or more than £5,000 over any month.
The UK-based This is Money financial website published an article that focussed on the possibility that customers could be scammed. These scams were said to be in the form of criminals promoting “high returns”, and fraudulent “giveaways”.
These kinds of scams are all fairly common, and nothing new throughout the financial industry today, and they are certainly not just applicable to crypto. Many highly serious crypto projects are innovating and improving the legacy financial system and must not be tarred with the same brush.
Cost of living crisis caused by central banks
The This is Money article went on to say that “fraudulent crypto investments” were a growing concern “particularly during the cost-of-living crisis.
There is no mention of how the cost-of-living crisis was engineered by the central banks’ printing of massive amounts of currency that has to be repaid by taxpayers and that has caused inflation that continues to steal the purchasing power of citizens.
Best savings deals?
The This is Money article finishes with a promotion of “Money’s five of the best savings deals”. The deals range from saving 2.86% to 4.3%, depending on how long a saver chooses to lock their money away for.
There is no comment on the fact that inflation in the UK is currently running at 10.1%, meaning that the best deal offered wouldn’t even account for half of the inflation that is stealing the purchasing power from those living in the UK.
Banks becoming obsolete
Banks began as institutions that served their customers. They were never there to make decisions on their customers’ behalf, whether they agreed or not.
Bank accounts are a necessity for those wishing to make transactions in their daily lives, but they are increasingly becoming tools of the government and its agencies to restrict and decide how, and with whom citizens can do business.
As the world becomes ever more interconnected, people are working with partners from many countries. Banks will need to adapt to this changing environment or face becoming redundant. Cryptocurrencies are bringing about this change.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.