One of the largest banks in the U.S. Wells Fargo has banned the use of issued credit card to buy bitcoin and other cryptocurrencies.
The representative of the press service of the Bank Shelly Miller (Shelley Miller) said that Wells Fargo “will continue to assess the problem with the development of the market.”
In early February, the J. P. Morgan Chase, Bank of America and Citigroup announced that they no longer allow their customers to buy cryptocurrency with credit cards. Its decision banks explained the high volatility of cryptocurrencies and associated risks.
Joined four months later to ban Wells Fargo is with three of these banks so-called “big four” largest conglomerates in the United States.
A study conducted last year by the company LendEDU showed that about 18% of the investors in bitcoin are used to Finance investment credit card. Of these, 22% are unable to repay the credit card after the purchase of the cryptocurrency.
Bitcoin is the most popular cryptocurrency, despite the fact that the price from the highs of the end of December fell more than twice. Over the weekend quotes BTC dropped to $6700 per coin. The reasons, experts believe the hacking of the Korean crypto currency exchange Coinrail and news about the CFTC investigation against the four major crypotologic sites.
We will remind that in February the decision to deny customers the use of credit cards to trade cryptocurrencies was also adopted by the British group, Lloyds Banking Group and Australia’s largest financial conglomerate Commonwealth Bank of Australia.