In an article released in Fortune magazine on June 11, American bank Wells Fargo has decided to prohibit credit card usage in buying cryptocurrencies.
The San-Francisco-based bank is one of the largest banks in the US in terms of assets. In the statement produced by its spokesperson, the bank iterated that their clients “can no longer use their Wells Fargo credit cards to purchase cryptocurrency,” and that the reason for it is that they are “doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment,” referring to cryptocurrency-related purchases.
Furthermore, the spokesperson said that the decision is only “in line with the overall [banking] industry.” However, the bank has not closed the door on the issue indefinitely. They even promised to “continue to evaluate the issue as the market evolves.”
The decision is not the first of its kind, since reputable banking organizations in the US like Bank of America, J.P Morgan Chase, and Citigroup have previously executed the same action earlier this year. Other countries also express a similar sentiment, as the Toronto-Dominion Bank (TD) in Canada also banned the use of credit card for crypto purchase purposes, as well as India’s HDFC Bank, Lloyds Banking Group in the UK, and Virgin Money in Australia, South Africa, and the UK.