After a number of other major US financial institutions about the ban on the purchase of bitcoin and other cryptocurrencies using their credit cards announced financial company Wells Fargo & Co, according to Vloomberg.
While the ban on the cryptocurrency will act, Wells Fargo “will continue to assess the problem with the development of the market,” noted the press-Secretary of company Shelley Miller.
Thus, Wells Fargo joined Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp., which also limited the purchase of cryptocurrencies through their credit cards in February, citing market volatility and credit risks.
As has noted then the representatives of the organizations, they are concerned that they will “take the hook” when purchasing crypto-currency the customer will lose money and not be able to repay the loan.
According to the research company LendEDU, approximately 18% of investors who buy bitcoins, used to purchase credit card. Of these, 22% are unable to repay the balance after the purchase of tokens.
We will remind, in December 2017 head of equity capital Wells Fargo Securities Christopher Harvey said that the collapse of the crypto-currencies may negatively affect traditional equity markets.