Canada’s answer to cryptocurrency ban by the government

Earlier Canada’s BMO Financial Group had put a ban on credit and debit card customers from buying cryptocurrencies. BMO (Bank of Montreal) is one of the largest banks present in Canada. BMO announced a ban on its clients participating in cryptocurrencies on March 28, 2018.

Ban on cryptocurrencies

Bank of Monreal implemented a notice to all its clients- individuals and companies, banning them from participating in cryptocurrencies. BMO Financial Group issues the notice on March 28, 2018. Consequently, this was a huge blow to many crypto investors around the world. Earlier, a sizable number of banks had also decided against financing cryptocurrencies.

Read more: Some light on India’s crackdown of cryptocurrencies.

Several banks from Canada had already followed BMO’s decision of banning cryptocurrency transactions. Over the past few months, several major lenders and credit cards issuers are doing the crackdown of cryptocurrencies at a global level. Canada’s largest bank Toronto-Dominions Bank (TD Bank) has already blocked attempts to buy ‎digital currencies last month. ‎Also, Royal Bank of Canada said that it would allow cryptocurrency transactions only in “limited circumstances”. However, RBC, which is the second largest bank by assets, didn’t cut off crypto purchases completely. This incident is somewhat similar to RBI’s crackdown on cryptocurrency exchanges in India.

The Solution

However, the local investors from Canada didn’t sit idle. Canadians resorted to a system called localbitcoins. Localbitcoin is the system where one can deal with cryptocurrencies locally among other people and then do its payment using fiat currencies.

Local bitcoins chart in Canada

Local bitcoins chart in Canada

As we can clearly see from the chart, the use of local bitcoins in Canada increased exponentially after the bank’s decision to ban transactions with cryptocurrencies. It shows splurge in bitcoin volume usage from less than 1.2$ million to more than 7.2$ million. And this increment of 6x happened within a period of 3 weeks. Canadians proved this way, that they won’t be stopped because of the bank-imposed ban. And also, they will trade in cryptocurrencies using other p2p platforms like localbitcoins.

Read more: Cryptocurrency exchanges look to shift base abroad

This is actually the whole point of crypto and bitcoins in general: individual freedom. The hypocrisy of governments and banks is more than well-known to all of us and their alleged “consumer protection” is actually a direct attack on human rights. Also, economic freedom derives individual freedom. That is, one has the right to spend one’s money the way he/she wants. Furthermore, developments of such p2p platforms are essential for the survival of cryptocurrencies. Localbitcoin has been around since 2012. It is a platform where which connects Bitcoin buyers and sellers in an open, peer-to-peer market. There are plenty of reasons to recommend Local Bitcoins as a secure and easy-to-use trading platform.

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