Decline in Mastercard Money Transfers Ratio: The Cause is Prohibition of Cryptocurrency Purchase with Credit Cards-Sat May 05

After the world’s leading commercial banks forbade their customers to purchase cryptocurrency using their credit cards, there has been a decline in the number of international transfers Mastercard has made in the first three months of 2018. There is a relative decline in the money transfers of the famous payment company, according to a report released Wednesday by a senior financial officer at Mastercard.

Speaking about the matter, Mastercard executive Martina Hund-Mejean said that the company’s international money transfers were up about 19 percent in the first quarter of 2018, unfortunately it is less than the last quarter of 2017 by 2 percent.

Many major banks have banned the purchase of cryptocurrencies with credit cards

As might be recalled, many major banks have banned the purchase of cryptocurrencies by their customers using credit cards in the last portion of 2017, when Bitcoin prices were rising every day. This movement was welcomed by banks that think it is dangerous for many to enter the sector by borrowing or using credit cards.

Over the past few months, many banks, including Bank of America, Citi, JP Morgan Chase and Capital One, have closed their credit cards for the purchase of cryptocurrencies.

Speaking about the subject, Mastercard manager Ajay Banga said that these credit card bans as well as the other regulations related to cryptocurrencies have contributed to this ratio. The experienced manager, who acknowledged that there was a loss of interest in the first quarter of 2018 compared to the last quarter of 2017, stated that the company supported this because Mastercard was very positive in the face of such rules.

Indicating that credit card purchases of cryptocurrencies are not already seen in the company’s income targets or resources, Banga concluded that: ““If the government creates digital currency, we will find a way to be in the game. We will provide rails for moving currency from customer to merchant. The government mandated digital currencies are interesting. Non-government mandated currency is junk.”

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