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Joint Bankcards Banned by PBC, Making Room for Bitcoin Virtual Card?

Last week’s rumor turns out to be true: all dual-network cards, a credit card bearing logos of Unionpay plus VISA or Mastercard, will be banned by the People’s Bank of China (PBC) as per various media report in China, including CCTV.

According to the new rule, transactions conducted by foreign bankcard associations that have not acquired domestic bankcard clearing licenses should be denominated in foreign currencies, and any of their transactions that were conducted within the Chinese border will be considered illegal.-Global Times

 

The joint-card was issued in China around 2003 with the mutual efforts of Unionpay and foreign bank associations like Mastercard and VISA as an expedient measure. A common Chinese may use this card to pay abroad at home via Unionpay channel and abroad via international channel. As per the BIN number allocation, VISA card starts with “4”and “5” goes to Mastercard. “62” was granted to the China Unionpay by ISO in 2004. But the dual-network card usually starts with foreign bankcard code and looks like this:
unionpay-mastercard

Joint Credit-Mastercard Card sample 

As per yicai, the number of valid dual-card is around 200 million and the single-network card (with VISA or Mastercard logo only)is less than 10 million. Around 500 million Unionpay card are in circulation. The joint-cards in use will phase out when they expire and single-network card will be issued.

Bitcoin virtual card provider like Xapo,e-coin, holytransaction, wirex, coinzy have been around for quite a while.Unlike credit card, these virtual cards often requires deposit of certain amount of bitcoins to the designated address to be functional.

Wences Casares, CEO of XAPO is not aware of the news and therefore unable to comment:

I am not familiar with the ban of the joint credit card in China.

Will the ban of dual-card makes room for bitcoin payment or bitcoin virtual card?

“Not likely! “

said Shiliang Huang, a bitcoin analyst in China. ” Bitcoin payment is no-winner against the incumbent payment system like Unionpay or Alipay in China.”

No more joint Unionpay-Visa cards. Is it a step backward for RMB internationalization?

Ye Tan, a famous financial analyst known for her sharp comments, concludes:

yetan
Mastercards and the likes are basically deprecated.

The purpose is clear: a nationwide credit and identification system is established to review all outflow capital. As long as the money stay at home, everything is negotiable.

Maybe curbing the outflow of USD is of better priority or the “internationalization” is happening somewhere else.

However, one thing that interest me is that a small local government portal  released a short article, saying that the China Unionpay has reached agreement with Russian Bankcard Payment system(NPCS)on issuing joint-cards on 29th Sep, 2016.

npcs-joint-card

Agreement reached between China Unionpay and Russia NPCS to issue joint cards

Banning one joint card and allow another?  Maybe it’s just the beginning of more measures to control capital outflow.

COMMENTS(10)

  • hl5460
    12 months ago hl5460

    Last week’s rumor turns out to be true: all dual-network cards, a credit card bearing logos of Unionpay plus VISA or Mastercard, will be banned by the People’s Bank of China (PBC) as per various media report in China, including CCTV.According to the new rule, transactions conducted by foreign bankcard associations that have not acquired domestic bankcard clearing licenses should be denominated in foreign currencies, and any of their transactions that were conducted within the Chinese border will be considered illegal.-Global Times http://news.8btc.com/joint-bankcards-banned-by-pbc-making-room-for-bitcoin-virtual-card

  • piloder
    12 months ago piloder

    Quote from: hl5460 on November 28, 2016, 08:57:39 AM

    http://news.8btc.com/joint-bankcards-banned-by-pbc-making-room-for-bitcoin-virtual-card
    So if they are talking about banning all visa/mastercard logo bearing debit cards, doesn’t this will also apply for bitcoin debit cards which have visa/mastercard logos like from cryptopay, xapo, coinsbank etc? Or does this ban is only for card holding dual logos like unionpay + visa/mastercard ?

  • jondeen707
    12 months ago jondeen707

    Quote from: piloder on November 28, 2016, 10:54:04 AM

    Quote from: hl5460 on November 28, 2016, 08:57:39 AM

    http://news.8btc.com/joint-bankcards-banned-by-pbc-making-room-for-bitcoin-virtual-card
    So if they are talking about banning all visa/mastercard logo bearing debit cards, doesn’t this will also apply for bitcoin debit cards which have visa/mastercard logos like from cryptopay, xapo, coinsbank etc? Or does this ban is only for card holding dual logos like unionpay + visa/mastercard ?

    Yep, additional clarification would definitely help. Anyway it’s clearly aimed at tightening capital controls. And that, again, may stimulate demand for bitcoin in China.

  • BitcoinAllBot
    12 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • IIOII
    12 months ago IIOII

    Apparently the Chinese government wants to squeeze out VISA and Mastercard to pay license fees. I’m sure it will be easy, considering that China is a huge market for them.Another motive could be boosting use of the Yuan and to get rid of USD dominance in the marketplace.A lot of card holders will be annoyed by this move for sure. The question is who they will blame for it and if they may even start looking into Bitcoin.

  • Zadicar
    12 months ago Zadicar

    Quote from: IIOII on November 28, 2016, 04:26:01 PM
    Apparently the Chinese government wants to squeeze out VISA and Mastercard to pay license fees. I’m sure it will be easy, considering that China is a huge market for them.Another motive could be boosting use of the Yuan and to get rid of USD dominance in the marketplace.A lot of card holders will be annoyed by this move for sure. The question is who they will blame for it and if they may even start looking into Bitcoin.
    Lots of card holders will surely be annoyed on this implementation on which banning all VISA and mastercard. I dont really know whats the reason behind on this  step but some other members said that it might put some charges on foreign currencies that will enter to the country, USD is somehow dominant compare to yuan thats why government already make such step.

  • Yakamoto
    12 months ago Yakamoto

    Now that’s a surprising choice.I don’t know why China would do something like that, unless they’re really trying hard to completely limit capital flowing out of China and into other western countries. They’re either pushing to dramatically expand their domestic financial tools, or they just want the US out of their country and want to prevent something like what happened to Russia happening to China.

  • captchu
    12 months ago captchu

    It smells fishy but a perfect conspiracy theory. Russia and China to issue joint bankcards is total bullshit.

  • 8btccom
    12 months ago 8btccom

    It’s up to you to decide

  • JeffBrad12
    10 months ago JeffBrad12

    Quote from: hl5460 on November 28, 2016, 08:57:39 AM

    According to the new rule, transactions conducted by foreign bankcard associations that have not acquired domestic bankcard clearing licenses should be denominated in foreign currencies, and any of their transactions that were conducted within the Chinese border will be considered illegal.-Global Times

    Chinese was kicking the foreign bankcard association from his country, their new rule is very strict.If it won’t bring good news for international bankcard associations. the government has taken the steering for that, the intervention is near.  

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