The erstwhile announcement made by Tiberius Group AG to issue a digital currency associated with the price of metals namely cooper, nickel, aluminum, gold, tin, platinum in September 2018. The company is expected to postpone its plan in order sale its metal led cryptocurrency called Tiberius Coin due to high cost of fees charged by credit card companies as reported by Bloomberg on 9th October.
The business models of the company designed on the diversification strategy in order to sustain its position in the market for a longer period of time. The company is more inclined to offer its digital currency with a mix of various metals like stability metals, technology metals, electric vehicle metals instead of its digital currency associated with a single commodity.
According to the company’s internal assessment, the company is not competent enough to take orders amounting to $15 million due to the ban imposed on credit cards. Further speaking to the subject matter, the company said in its statement, “As of now, we are investing heavily in our platform, improving it and working with notable credit card processors to onboard new payment gateways for our client base to use. All investors who took part in the sale will have their money refunded within 30 days.”
Needless to say that credit card companies are not actively focusing to work with cryptocurrency companies and all those that involved in digital asset trading activities. In June 2018, Well Fargo based in San Francisco official announced that it would not allow its customers to trade with cryptocurrency through the use of its credit cards. Thereby it made cryptocurrency market and used crippled.
The story is not confined up to here. The U.S. based banks namely Bank of America, J.P. Morgan Chase, Citigroup would not allow the customers to trade or purchase cryptocurrencies through their credit cards. The global banking and investment banking giant, J.P. Morgan discontinued the activities involved with cryptocurrency due to the high volatility and risk involved, whereas Citigroup would review its policy and implement the services when the right time will come.