Canada's Top Bitcoin Exchange, QuadrigaCX, unexpectedly had RBC and CIBC close key accounts.
Here is a screenshot of their statement: and link to Reddit
Yesterday, Nicooa on Reddit reported the following about internal memos within the bank he works at:
Canadian Banks Feel The FEAR
The fear caused by the stark realization that cryptocurrencies remove them as the middle man in money transactions.
What do you think of these latest panic moves by the Banks?
As you said, it’s out of fear. It shows that backs are getting caught totally off guard and are too slow to adapt.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Since this posting, there have been more reports of Canadian banks restricting purchase of cryptos with credit cards and even going so far as to terminate interac transaction 'privileges' to people who transferred their own money to invest...
It's great to read of the unrest about these anti-competitive actions - it really does highlight the benefits of the permissionless financial tools provided by cryptocurrencies.
Selling people into debt, charging fees for holding your money, and acting as the arm-length tool of the government - is a failing business plan. Even the Canadian Banks recent expansion into selling insurance is not enough to keep their business in operation as it is today.
But someone will be profiting with micro-transaction revenues to provide similar services of financing large purchases, and someone will profit with micro-transaction revenue by providing smart-contract-style insurance agreements.
And Canadian Banks should be pushing their way to the front of the crowd of the fintech agencies that are writing the future software that will provide reliable solutions with greater ease, transparency and less cost -
But instead, it appears that Canadian Banks are closing doors and retreating into defensive and protectionist stance, like a boxer who knows he's outclassed, and just tries to defend as long as possible.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit