News & Reports

A Ban Placed on Purchasing Cryptocurrency with Credit Cards?

 

In the last couple of years, some banking institutions have announced their resolve to impose a ban on the use of their credit cards in the purchase of cryptocurrency. Many have actually gone ahead to impose such a ban. The latest bank to do so is the Banking gaint Wells Fargo; henceforth no customer of Wells Fargo is permitted to make any crptocurrency purchase whatsoever.

 

Wells Fargo, reputed to be third largest bank in US with close to $2 trillion in total assets as at the close of 2017 will henceforth decline all cryptocurrency transactions entered into by their customers aided by credit cards issued by the Bank, reports Fortune.

 

A spokesman of Wells Fargo is cited to have made the following comments in a statement that was released on Monday, June 11:

“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. We will continue to evaluate the issue as the market evolves.”

 

A report from CCN notes that scores of other banks have already taken the initiative to have their credit cards banned from being used in the purchase of Bitcoin, Ethereum and other cryptocurrencies. Notable among these banks are Citigroup, JPMorgan and the Bank of America. What this means in the fact that customers interesting in using credit cards in their purchases, will have to rethink and perhaps find other alternatives. This is especially so because as many as four major banks have declined the use of credit cards issued by them to make cryptocurrency purchases.

 

A survey carried out by LendEDU, a student loan marketplace, revealed that approximately 18 percent of investors had made cryptocurrency purchases with credit cards. The study also showed that one-fifth of the investors who used credit cards in such puchases delayed in making payments as they rather sought to carry the balnces.

 

A LendEdu affiliate, The Student Loan Report conducted a follow-up survey and the results is quite revealing. It was discovered that a significant number of students – 21%, had accessed financial aid – loans that are generally not dischargeable in bankrupty – to invest in cryptocurrency, especially in the US.

Credible records show that the hard stands taken by Wells Fargo is only one of the few instances that has dealt unfavourable with the cryptocurrency industry. The bank halted the provision of baking services to a cryptocurrency exchange, Bitfinex. Bitfinex is reported to have since made do with a series of third-party accounts in its quest to access financial services until it eventually found a banking partner, Puerto Rico.

 

Is the move by Wells Fargo the last of its kind or should the cryptocurrency industry players Pyche themselves and where possible prepare for more to come.

 

Thanks for dropping by. Kindly share this post with your contacts. And visit this site more often for credible, juicy and up-to-date cryptocurrency news and a multiplicity of high value content.

Enjoy your day!!!

Images from

Link to Well Fago: https://www.wellsfargo.com/

Credit cards: https://www.creditcards.com/

Cryptocurrency: https://blockgeeks.com/guides/what-is-cryptocurrency/