Monzo Bank, a British online bank, allows its customers to use funds in their accounts to make cryptocurrency purchases on exchanges. While customers cannot buy cryptocurrencies directly on the banking platform, Monzo confirms that they can use various crypto exchanges, including major ones like Coinbase. However, Monzo has temporarily suspended payments to Binance following a warning from the FCA earlier this year.
To buy cryptocurrencies using Monzo Bank, you need to open an account on a UK-based crypto exchange (excluding Binance) and deposit pounds from your Monzo account. The process may vary depending on the exchange, but generally, you can either send money via bank transfer or use the Monzo debit card for payment. It’s important to consider transaction costs, as card payments often incur higher fees.
While some banks around the world have integrated cryptocurrency buying and selling services into their platforms, Monzo Bank has not done so yet. However, it’s possible that this integration may be added in the future. Currently, PayPal offers such services in some countries. Despite being a relatively young bank, Monzo could potentially follow in PayPal’s footsteps.
Although there are few crypto-friendly banks like Monzo, many traditional banks still hinder money transfers to crypto exchanges. The integration of cryptocurrency services into banking platforms seems likely as stablecoins represent a tokenized version of fiat money. However, the crypto market’s deregulated nature and prevalence of scams and unreliable actors make traditional banks cautious. The low profitability and associated risks also contribute to their hesitation in providing crypto services.
In conclusion, while Monzo Bank allows customers to use their accounts for crypto purchases on exchanges, direct integration of cryptocurrency services into banking platforms is still limited. The potential benefits and risks involved in offering such services pose challenges for traditional banks.
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