Visa card holders cannot perform crypto transactions: BSP

THE Bank South Pacific Financial Group Ltd (BSP) Visa card holders cannot perform cryptocurrency-type transactions because the bank does not have access to data relating to those transactions to determine their authenticity, says chief executive officer Robin Fleming.
Fleming was responding to questions in regards to Bitcoin transactions that “the Bitcoin system allows transactions to occur directly from person to person without requiring a central party (such as a bank) to verify or record the transactions”.
He said it was “unlike most conventional payment methods, such as electronic bank transfers, which rely on a central party such as a bank to keep and update records of transactions and maintain records of those transactions that include ultimate beneficiary of any payment”.
“Therefore due to these concerns regarding the ability of BSP to have access to data relating to crypto currency transactions, and the authenticity of those transactions, BSP Visa cardholders are unable to perform transactions using their BSP issued VISA card for cryptocurrency-type transactions.
“BSP also maintains a strict monitoring programme around the use of any BSP accounts for these purposes and does take appropriate action if any issues are identified including closure of accounts.”
The Bank of PNG had previously warned the people that it did not issue or regulate crypto-currencies (virtual currencies or digital money such as bitcoin, ethereum, EOS, Lite Coin and others).
“They do not have any legal tender status to be accepted as a currency in PNG and investment in such digital currencies is considered very risky and speculative in nature.”
The bank warned people who invested in any crypto-currency that they do so at their own risk, as there is no guarantee that crypto-currencies would be accepted as a medium of exchange, or hold their value.