Bank of America (BOA) – the biggest U.S. lender has prohibited customers from making use of US credit cards digital currencies purchases. Also, JPMorgan Chase financial service company stated that they have stopped handling the process of buying Bitcoin using credit cards. He said it is as a result of the risks and volatility, however, a spokesperson for J.P. Morgan told CNBC that they will evaluate the problem as the market advance. He also stated that the bank has chosen to repudiate the acquisition of cryptocurrencies with credit cards.
The recent occurrence is due to the fact that Bitcoin gained an all-time high of over $19,000 hit in December. The extremely successful cryptocurrency had rallied 2,000% within 12 months to hit the record. Nonetheless, Bitcoin has plunged in the past weeks, falling under $8,000 since towards the end of November.
Other digital currencies have also plummeted in the recent past after increasing rapidly. Surprisingly, some cryptocurrencies have even soared higher than Bitcoin.
A few weeks ago, JPMorgan Chase stated that while the bank was assessing its policy, they were still permitting customers to buy Bitcoin with their credit card.
Last week, Citigroup said they were also evaluating policies that permit its buyers to purchase bitcoin using credit cards. However, City bank did not respond quickly to CNBC’s demand for a statement on Friday.
Earlier in January, Capital One Financial stated that it is determined to stop the buying of Bitcoin with its credit cards. On the other hand, Discover Financial Services (DFS) has successfully banned cryptocurrency purchases using its credit cards since last two years.
Recently, a lot of major retail-facing organizations have devised easy means for end users to buy the cryptocurrency. The Jack Dorsey’s payments firm, on Wednesday, announced that the major consumers of its money app now have the opportunity to trade Bitcoin. In the meantime, stock exchange app, Robinhood is introducing for the first time, Ethereum and Bitcoin exchange in 5 states this month.
Coinbase, the dominating United States marketplace for purchasing major cryptocurrencies, publicized in mid-October that it was launching out instantaneous purchases of almost 25,000 dollars worth of Litecoin, Bitcoin, and Ethereum from the United States bank accounts.