JPMorgan, Bank of America Bans Purchase of Cryptocurrencies with Credit Cards

The cryptocurrency market has crashed hard this week. Bitcoin'due south price dipped below $eight,000 for the get-go time since November concluding year. According to Coindesk, the volatile digital currency is floating effectually $7,500, marking its fall for the first fourth dimension in about 11 weeks.

Following the sick-fated refuse, a growing number of U.S. credit card issuers are deciding to ban the buy of cryptocurrency. JPMorgan Chase and Bank of America, two of the largest banks in the U.s. said that they are halting the purchase of bitcoin and other cryptocurrencies on their credit cards.

In an official statement to CNBC, a J.P. Morgan Hunt spokesperson said, "At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the upshot as the market place evolves." A Depository financial institution of America spokesperson said something similar via an email.

JPMorgan, Bank of America Bans Purchase of Cryptocurrencies with Credit Cards In example of Bank of America, this move doesn't bear upon debit cards; however, the policy applies to all personal and business credit cards issued by the bank. That being said, the ban doesn't come every bit a surprise considering all the speculation surrounding the cryptocurrency bubble.

Assuasive the customers to purchase cryptocurrencies can be a huge headache for carte du jour issuers. There's always a risk of being left on the claw if a borrower bets big and tin't repay the debt. That'south only asking for more than trouble. Although several major retailers have made information technology easier to buy bitcoins in the concluding few months, this movement is expected to restrict the flow of currency.

Other major banks are likewise expected to put this policy into place. Citigroup Inc., the third-biggest depository financial institution in the United states is also considering the policy. Other financial corporations similar Capital One Fiscal Corp. and Discover Financial Services have already said that they are not supporting the transaction. Earlier this week, Mastercard Inc. also said that the cross-border volumes on its network rose 22-percent in the terminal week and it is believed to be furled party past clients using their cards to buy digital currencies.