According to a recent article by Reuters, the Apple Card rejects crypto purchases.
But is anyone surprised?
Apple Card is where Apple is the brand that you as the consumer know and interface with on a regular basis but it is the companies behind the scenes that processes and conducts payments, namely Goldman Sachs and other partners that must conduct crucial aspects of the financial transaction.
Users may not use the Apple Card for a slew of other purchases ranging from lottery tickets to other forms of gambling.
Due to a variety of reasons ranging from economic stability and more, users will notice that their customer agreements state that restrictions would apply on “cash advance and cash equivalents."
These cash advances and cash equivalent transactions are usually more expensive transactions and are considered as cash borrowed against your credit allowance.
The reason that these “cash advances” are strictly regulated by credit card companies is that this may indicate lack of personal liquidity and financial distress on the part of the borrower. It may server as a huge red flag for the credit card company as they need to work with people who more financially solvent.
As such, these types of transactions carry larger fees ranging from cash advance fees to potential ATM fees and higher interest charges.
Cryptocurrencies are largely volatile assets and the Apple Card and Goldman are minimizing a potential risk factor for themselves and for their clients.
The Apple Card and Discouraging Cryptocurrency Transactions
Designing credit card policies as such provide for stability overall. Credit card companies and financial institutions would be able to cut off potential speculative behavior like sports betting for those who may not be able to payback over time.The Apple Card Decentralization and User Choice
The Apple Card is an interesting example of centralized finance and the reason why there are proponents of decentralization in finance. Where users are in control of their funds and may choose the type of investments they seek to make without third parties accepting or rejecting their choices. For example, with a service like Argent, users can purchase Ethereum, open up a CDP and borrow DAI to buy more ETH or other assets, all in a decentralized fashion. Stability is ensured through the collateral.Disclaimer
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