The new credit card from Apple and Goldman Sachs will not allow users to buy cryptocurrency. As it is said at least in an agreement that Goldman Sachs published August 2 on the website.
The agreement stipulates that the card can not be used to obtain cash advances or cash equivalents including digital currencies, lottery tickets, circuit bets and casino gambling chips.
Apple wants to generate more revenue in the service sector
According to Reuters, Apple Management has introduced the card in order to increase service revenue after relying heavily on hardware sales for many years. Sales of the technology giant with its smartphones fell 12% in the last quarter.
Goldman Sachs' partnership with Apple is focused on developing products and services to strengthen the bank's customer-focused business. However, the direction of the financial institution does not seem to have much confidence in the stability of the cryptocurrency market.
In August 2018, Goldman published a 42-page detailed report entitled "Economic Outlook". The company argued that cryptocurrencies did not fulfill the three main responsibilities of a currency. According to the investment bank, cryptos are neither an effective means of exchange, nor a store of value, nor a unit of account.
Goldman Sachs could introduce its own cryptocurrency
The Goldman strategy team predicted last year that crypto – currencies would no longer be worthless because of their inability to function as money. But now, it seems that the institution is planning to introduce its own cryptocurrency.
At the end of June 2019, David Solomon, CEO of Goldman Sachs, said in an interview that the bank "definitely", JP Morgan Chase could follow in the development of its own digital assets. On July 10, the New York-based financial institution issued a vacancy announcement for a project manager on the crypto-assets team.
After Apple has previously removed several applications related to cryptography from the App Store, including the application of Coinbase, the US digital asset exchange system, Apple has announced the CryptoKit iPhone at the company's global developer conference in June 2019. The new cryptography kit allows developers to implement various functions of hashing, encryption and key generation in iOS applications, by replacement of Apple's previous CommonCrypto software program.
Too risky to allow cryptographic purchases of credit cards
While Goldman Sachs may be working on cryptography projects, it is not surprising that they prohibit users from buying cryptocurrency with their credit cards. In February 2018, J.P. Morgan, Citigroup Inc. and Bank of America announced that they would no longer allow users to purchase crypto with standard credit cards.
The major financial institutions have expressed concern about the extreme volatility of cryptocurrencies and also indicated that they did not want to assume the "credit risk" related to the execution of cryptographic operations.
Proof of text: cryptoslate