How to buy Bitcoin in Canada after major banks killed credit card purchases?
This week in Canada has been marked by another blow delivered to Bitcoin from the traditional banking system. Several large banks have disallowed purchases of Bitcoin using the cards they’ve issued.
In particular, these two large banks have pulled the plug on plastic card Bitcoin purchases:
Do not expect these banks to be the only ones and attacks like these to be the top of their tactics. The traditional banks are threatened by Bitcoin and they will do their best to oppress it before they lose.
There are several workarounds, obviously, since Bitcoin was designed to be even more resilient than this. Here’s a quick list (add more in comments and we’ll add them to the list!):
This is the most obvious and the most popular solution. Localbitcoins was created to work when everything else does not. It’s a peer to peer marketplace with a built in escrow system and a rating mechanism. There are tons of sellers working in Canadian cities:
In fact, the service got so popular that the volume in CAD grew up exponentially right after the ban:
Hodlhodl could be an even better marketplace since the platfrom is holding coins sold in multisig wallets, but for now there’s just one Bitcoin seller in Canada:
2. Wire transfers. PayPal. Any intermediary payment method.
The ban concerns credit cards only – so technically any platform selling Bitcoin that accepts wire transfers would work just fine. Same goes for PayPal – when you are making PayPal deposits to an exchange your credit card gets charged by *PAYPAL* which is OK in every bank’s book. The fact that you are then sending these funds to an exchange to buy Bitcoin is not immediately traceable by any bank so they won’t be able to block this activity. Try topping up Bitpanda with Paypal and buying Bitcoin there.
3. Prepaid MasterCard from Money Mart
Prepaid master cards come from different issuers and not all of them are supporting anti-Bitcoin measures of Canadian banks. The MasterCard you can get at Money Mart works for online Bitcoin purchases at regular places like Indacoin, and it does not cost a fortune.