Traditional banks continue to wage war on cryptocurrencies with yet another US bank banning their use from its credit cards. Wells Fargo has become the latest bank to announce that it will no longer allow its customers to purchase cryptocurrency according to a report in Fortune on June 11, 2018.
Wells Fargo, the third largest bank by assets in the US, said that its customers are now prohibited from purchasing cryptocurrency through the use of its credit cards. This decision appears to have been taken due to the bank perceiving any purchase of cryptocurrency as an unnecessary risk, which could put the bank’s customers into an uncomfortable situation due to volatility and rapidly fluctuating prices.
A Wells Fargo bank spokesperson said, “Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. 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.”
Still, it appears that this is not a definite decision since the spokesperson did say the bank would be evaluating this position in the not too distant future ‘as the market continues to evolve’.
Wells Fargo is certainly not the only bank that has banned the purchase of cryptocurrencies with their cards. Last February, three of the largest US banks – JP Morgan Chase, Bank of America, and Citigroup – had announced that they would no longer allow the purchase of cryptocurrencies with their credit cards. Later in February, JP Morgan Chase said that financial institutions would eventually face the risk that payment processing and other services would be disrupted by new cryptocurrency technology.
The list of banks that have banned cryptocurrency has grown quite considerably of late. The Toronto-Dominion Bank in Canada, which is one of the largest banks in North America, announced in an email that it was banning cryptocurrency purchases with its credit cards. The bank said that these measures were being taken to protect customers as well as the bank.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.