Customers of Britain’s largest bank will no longer be able to buy bitcoin using their credit cards because of fears that they could make huge losses.
The ban by Lloyds Banking Group, which comes into force today, applies to all cryptocurrencies and comes amid growing concerns that inexperienced speculators excited by the hype surrounding bitcoin could be caught out if the bubble bursts.
The price of bitcoin soared to nearly $20,000 (£14,000) before Christmas from less than $400 two years ago, with many amateur investors buying in the past few months. However, the cryptocurrency’s value subsequently halved and stood below $8,400 last night.
On Friday Nouriel Roubini, the economist credited with having predicted the financial crisis of 2008, said that bitcoin was “the mother of