Switzerland-based commodities assets manager Tiberius Group AG has delayed the sale of its metals-backed cryptocurrency, Tiberius Coin, due to high fees from credit card companies, Bloomberg reported Oct. 9.
The company announced its intention to issue a digital currency tied to the price of metals — copper, aluminum, nickel, cobalt, tin, gold and platinum — in late September. Tiberius Group then explained that “instead of underlying the digital currency with only one commodity, we have chosen a mix of technology metals, stability metals and electric vehicle metals. This will give the coin diversification, making it more stable and attractive for investors.”
Now, the Swiss firm will reportedly delay the launch of Tiberius Coin due to “unacceptably” high fees from credit card processing companies. Per Tiberius’ assessment, it will be unable to handle orders worth $15 million due to “restrictions” put on credit cards. Tiberius stated:
“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.”
Credit card companies have previously shown some hesitation about working with cryptocurrency companies and digital asset trading. In June, San-Francisco-based bank Wells Fargo announced that it will no longer allow its customers to purchase cryptocurrency using its credit cards. The move was reportedly taken in order to avoid “multiple risks” associated with cryptocurrency usage.
In February, it was reported that customers at J.P. Morgan Chase, Bank of America, and Citigroup can no longer purchase cryptocurrencies with credit cards. J.P. Morgan Chase said that it had discontinued the service “due to the volatility and risk involved,” while Citigroup stated it would review their policy as the crypto market develops.