Wells Fargo Is the Latest Bank to Bar Consumers From Buying Bitcoin While Using Its Credit Cards
Yet another banking giant, worried about the asset’s volatility, is banning cryptocurrency purchases using its credit card.
Wells Fargo, America’s third largest bank by assets, said Monday that customers will no longer be able to purchase Bitcoin and its ilk using credit cards issued by the firm. The decision follows on similar announcements made by J.P. Morgan, Citi, Bank of America, as banks and payments processors feared that the asset’s wild price swings could cause buyers to renege on payments back to the bank.
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency,” a bank spokesperson said in a statement Monday. “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.”
And, similar to other statements from banks about the decision, Wells Fargo noted that it will continue to monitor cryptocurrency markets.
“We will continue to evaluate the issue as the market evolves,” the spokesperson said.
The move comes at a time when the volatility of Bitcoin, the poster child of the cryptocurrency movement, has fallen in recent weeks compared to 2017. Still, its price moves are significant—leading to sizable gains and losses. The value of the digital coin fell to $6,700 Monday after hovering at about $7,500 for the past week.