Bank of Montreal which is a Canadian Bank (BMO) has banned its customers from buying Bitcoin. According to a Screenshot shared to Reddit by one of the Bank’s employee the bank has blocked all credit, debit and even online payments for Bitcoin and other digital currencies.
The bank has stated that the move was because of the volatility nature of the digital currencies. According to a statement from the BMO bank: “This decision was arrived at because of the volatile nature if cryptocurrencies and also to protect the security of our clients and also protection of the bank.”
Bitcoin prices have been changing between $7500 and $11,500 this year. The volatility nature of Bitcoin since January is, however, less than other years over the 9 year existence of Bitcoin. The Bank of Montreal did not, however, explain how cryptocurrencies are affecting the bank’s customer’s security or even how digital currencies were interfering with the bank.
Similar decisions have been made before by American banks whereby they stopped the buying of cryptocurrencies using credit cards in the country. However, some very notorious financial institutions have changed their minds like the UK-Barclays. The Bank actually went ahead to partner with America’s biggest exchange company Coinbase to help make payments to the exchange clients in UK in a faster and cheaper way.
Banks seems to be threatened by the decentralized nature cryptocurrencies which are threatening their existence. For that reasons many banks have been frustrating cryptocurrency and especially Bitcoin transactions through them. Last week several exchanges in Chile sued some banks for closing their accounts.
A court in Israel stopped a bank from closing exchanges accounts. The fight between the decentralized sector and the centralized one is likely to continue with many people preferring the decentralized one so that they can control their finances. Countries have also started regulating the currencies in an attempt to protect their central banks.