World’s biggest banks bar cryptocurrency transactions with credit cards

World’s biggest banks bar cryptocurrency transactions with credit cards
The Siliconreview
05 Febuary, 2018

Bank of America, J.P Morgan Chase and Citigroup, are saying a big no to Bitcoins purchases done using their credit cards.

The three major banks of the USA, each Confirmed to Bloomberg, that they will be prohibiting transactions involving digital currency through credit.

Although customers can use their debit cards for the cryptocurrency transactions, said Bank of America spokeswoman Betty Riess.

"At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the issue as the market evolves." a J.P. Morgan Chase spokesperson said in a statement.

Citigroup said in a statement that "We have made the decision to no longer permit credit card purchases of cryptocurrency. We will continue to review our policy as this market evolves."

It’s easy to understand, why the ban was imposed from the perspective of credit card providers. Unlike most other purchases made with credit, cryptocurrency purchases are exposed to extreme price volatility, increasing the potential for a dramatic drop in value.

The announcement came as no surprise since Bitcoin has tumbled in the last few weeks, briefly falling below $8,000 Friday for the first time since late November. Bitcoin has more than halved in value from an all-time high above $19,000 hit in mid-December. The high-flying digital currency had rallied 2,000 percent in just 12 months to reach that record. Moreover, other cryptocurrencies have also fallen in the last few weeks after soaring, sometimes even far more than bitcoin, last year.