American banking major Wells Fargo has decided to ban the use of credits cards to buy digital currencies such as bitcoin.
A statement from Wells Fargo read: “Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency.
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“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.”
The bank plans to start declining transactions with bank-issued credit cards on known cryptocurrency exchanges and brokerage platforms.
A recent study by LendEDU revealed that 18% of people who bought cryptocurrency used credit card, and 22% of then could not pay off their balance.
Said to be due to the volatile nature of cryptocurrency, the move increases the number of banks that implemented similar policies this year.
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By GlobalDataIn February this year, several major banks such as Lloyds Bank, JP Morgan Chase, Bank of America, Commonwealth Bank of Australia (CBA), CitiGroup, Canada’s TD Bank and Virgin Money enacted the same ban.
