The cryptocurrency boom a few months ago enticed even people who know next to nothing about digital currencies to get in on the action as they dreamt about lucrative returns. Even if they didn’t have cash to buy digital currencies like bitcoin, they just used their credit cards for it. Banks were quick to prevent customers’ losses from piling up on their books so they started banning cryptocurrency purchases using credits and now Wells Fargo has joined that list of banks as well.
JP Morgan Chase, Bank of America, and Citigroup are just some of the banks in the United States that don’t allow customers to buy cryptocurrencies with their credit cards. To be clear, their customers can purchase these currencies using their debit cards because it’s money out of their account, but it doesn’t allow them to do that on money borrowed through the credit cards.
Wells Fargo has joined their ranks as well by confirming that it’s banning cryptocurrency purchases through its credit cards. However, the bank has said that it will keep an eye on the cryptocurrency market and see whether there’s a need to reassess the ban.
Some will still be able to find their way around the ban, either by first filling up a digital wallet with their credit card and then using it to buy bitcoin or simply purchasing a prepaid debit card with their credit card. The bank will be hoping, though, that it will be able to deter at least some customers from risking borrowed money on cryptocurrencies.
Filed in .. Source: bloomberg