Oh, boy. Binance will now take your money via credit cards, according to reports. This is a little bit frightening.
From CoinTelegraph: “According to the press release, Binance users will be able to use Visa and MasterCard cards to purchase Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Ripple (XRP).” Binance’s CZ: “We want to provide Binance traders with fast and easy access to crypto, in the most secure way possible.” Mr. CZ added that the exchange’s clients can purchase digital assets with credit cards and “start trading in minutes.”
I’m not sure how I feel about this. After watching most coins decline 90% in the last 12 months, I’m pretty neutral on the idea of exchanges taking credit cards as collateral. I suppose if banks on the other side want to clear the transactions, it’s entirely their prerogative. I can tell you from experience if you’re going to let people lay down bets without putting down cash up front, you’ll get plenty of bettors. I have been to Vegas and the race track a few times, you know. A futures exchange like CME or Nasdaq wouldn’t dream of letting someone slap down their Amex to start flipping nat gas contracts. It’s a Brave New World, though, and I’m not here to judge just to observe. My guess is this won’t fly in the US. It’s one to watch, though.