An increasing number of Credit card companies have started issuing a ban on credit transactions which is related to cryptocurrency. A lot of US-based credit card companies feels that supporting cryptocurrency is like supporting a falling knife.
The multinational financial institutions such as JPMorgan Chase & Co, Bank of America Corporation, Citigroup Inc have decided to take a halt in the purchase of various cryptocurrencies using their credit cards
A spokesperson for JPMorgan Mary Jane Rogers has said that:
“They are enacting a ban because they don’t want any risk associated with those transactions”
Bank of America Corporation has begun declining purchases using their credit cards. Bank of America has issued a memo mentioning that all purchases relating to cryptocurrency will not be possible. As the bank feels that these credit transactions are risky for the bank.”
The spokesperson for Bank of America Corporation, Betty Riess says:
“Declining purchasing of cryptocurrency only on credit cards and that it doesn’t affect debit cards Citigroup has also issued a similar statement mentioning that they have also declared a ban in the purchase of various cryptocurrencies following Bank of America Corporation.”
A spokesperson for CitiGroup Jennifer Bombardier has issued a statement saying:
“They will continue to review their policies on trading cryptocurrency as there is a evolution in the market.”
After these multinational banks have issued their new policies on the purchase of cryptocurrency. There has been a sudden decrease in the volume of cross-border transactions in the first quarter of 2018. The ban has been active over the last few months.
Major credit companies from the both the United States of America and Canada has issued the ban the last February. The main reason for the ban is because of the price volatile nature of the crypto currency.
A cryptocurrency investor, David tweeted in relation to the ban:
“Smells like banksters bs, that volatility it’s what makes crypto great, you have to be really stupid to lose your money. I have just 6 months in exerience trading cryptos, haven’t lost anything, and I’m just a common person that wants the best for everyone, didn’t study finance.”
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