Discover CEO David Nelms recently opened up to Bloomberg about the real reasons why customers cannot trade in Cryptocurrencies with their Discover debit and credit cards.
Nelms explained that financial institutions are legally required to follow strict government mandated Anti-Money Laundering (AML) systems when processing Cryptocurrency trades. The AML guidelines also mandate them to keep a close eye on the actions of traders.
The AML requirements would mean institutions like Discover will have to invest many millions of dollars to ensure compliance with the AML, Nelms disclosed.
In the interview, the Discover chief didn’t mince his words regarding his feelings towards Cryptocurrency investors, calling them “crooks that are trying to get money out of China or wherever.”
Many observers are surprised at Nelms condemnation of the millions of individual and thousands of reputable institutional Cryptocurrency investors as “crooks”. Currently, $24 billion worth of Cryptocurrency deals are concluded each day between millions of individual and institutions investors.
The Discover boss told Bloomberg that Bitcoin only offers a platform for money laundering and other financial crimes adding “or if someone steals our credit card numbers they’re going to ask for payments in Bitcoin. Those are the only use cases I’m actually seeing today.”
Cryptocurrency friendly websites and blogs were quick to respond that Nelms remarks that Bitcoin is merely a vehicle for laundering money for the Chinese were irresponsible and ill-informed especially since the Chinese government had banned all trading in Cryptocurrencies since September last year.
Since the Chinese government ban on Cryptocurrency trading, there has been virtually no trading there. The United States is said to be the largest market for virtual currencies followed by Japan and South Korea.
“Who is David Nelms to call millions of individual and institutional investors in Cryptos throughout the world as ‘crooks’?”, one tweeter user asked.