Last updated on May 16th, 2018 at 07:13 pm
These three American banks: J.P. Morgan Chase, Bank of America, and Citigroup customers can no longer purchase cryptocurrencies with their credit cards, report says.
Before CNBC report of February 3, J.P. Morgan Chase had confirmed on January 25, 2018 that it was allowing credit card purchases of cryptocurrencies, while Bank of America and Citigroup said they were reviewing their policies on using credit card to buy cryptocurrencies.
Less than a month since its approval of credit card purchase option, J.P. Morgan Chase is rescinding that decision.
“At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the issue as the market evolves,” spokesperson from the bank was quoted as saying.
Cryptocurrencies experienced the ‘biggest’ boom in 2017 since its popularity, but the story hasn’t remained the same since the beginning of 2018, with decline in the value of virtually all the digital coins.
At the time of publishing this post (15:38), bitcoin price was $8,849.20 USD, declining by 4% in the last 24 hours; ethereum fell from over $1k to stay at $899.99USD on Sunday, February 04, 2018, it fell by 7% in the last 24 hours.
Bitcoin Cash went for $1,184.45, declining by 5% while ripple (XRP) was still finding it difficult to regain its value as it’s now valued below one US dollar ($0.876801).
The dip cuts across the over 1,400 digital coins listed on the market.
Because of the volatility, another financial giant, Citigroup declared that it “no longer permit[ing] credit card purchases of cryptocurrency,” promising to review its policy as the cryptocurrency market evolves.
Also, Bank of America said it’d be putting on hold credit card purchases of digital currencies till policy reviews is completed.
What does it mean to cryptocurrency?
With the decline of credit card purchases by these three financial institutions, purchase of bitcoin, ethereum, bitcoin cash, ripple and other crypto is expected to drop (from their card holders).
According to report, bitcoin high in trading was around $11,700 (last week) when J.P. Morgan Chase was still allowing credit card crypto purchases.
This means die-hard cryptocurrency lovers may have to find an alternative to buying cryptocurrency of their choice.
J.P. Morgan CEO Jamie Dimon had been known for his bitcoin criticism since the boom calling bitcoin a “fraud” and went ahead to threaten to fire any employee that invested in the cryptocurrency.
What will you do if your bank banned the use of credit or debit card for btc, eth purchase today?