Over the past year, Bitcoin has seen its price surge by more than 700%. However, in the last months, we have seen the dollar price fall of Bitcoin by 40%. So, in a move aimed to reduce both legal and financial risk, most major banks have banned the use of their credit cards to purchase Bitcoin or other cryptocurrencies.
Bank of America
Following Bank of America’s ban on cryptocurrency purchase on Friday, JPMorgan banned the same practice on Saturday. Besides, City Group also confirmed that it’s halting the cryptocurrency purchase on credit. Customers who use Bank of America’s debit card can still use their cards to purchase Bitcoin and other cryptocurrencies according to a spokesperson named Betty Riess.
The Bitcoin Craze
These three major banks aren’t the only to block Bitcoin purchase using credit cards. Discover, and Capital One had already enacted their bans on cryptocurrency purchase. You may find yourself unlucky now if you were planning to get into the Bitcoin craze, but later you would definitely be thankful. As Bloomberg reported, it could be the huge problem for the lenders if the customers can’t repay their loans. These untraceable currencies could also be difficult for the banks to monitor, a requirement to be careful about money laundering.