One of the largest US banks, Wells Fargo, has banned cryptocurrency purchases with its credit cards, Fortune has reported.
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency,” a Wells Fargo spokesperson said yesterday, as quoted by Fortune. “We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
With this decision, Wells Fargo, the third-largest bank in the US by assets, joins US rivals Bank of America, Citigroup and JPMorgan Chase, which made similar moves in February, citing the credit risk associated with cryptocurrency transactions, as well as concerns over stolen credit cards being used for crypto purchases. Around the same time, British banking giant Lloyds announced that it was banning credit card crypto purchases across all its branches.
Similar to other statements from banks announcing the move, the Wells Fargo spokesperson said that the bank “will continue to evaluate the issue as the market evolves”.
As noted by Fortune, Wells Fargo’s decision come at a time, when Bitcoin’s volatility has decreased compared to last year. Still, the cryptocurrency continues to experience significant price swings. The latest example of this was observed on Sunday, when the original cryptocurrency lost nearly 10% of its value and hit a two-month low of $6,709.07. The slump, which was felt across the entire cryptocurrency market, seemed to be triggered by news that a small South Korean crypto exchange had been hacked, though many within the community expressed doubts that this was the main reason for the drop.
In today’s trading, the Bitcoin price stood at $7,799.40, as of 16:15 BST. The digital coin has gained 0.6% in the past 24 hours, according to data from cryptocurrency tracker Coinmarketcap.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.