Bank of America wants to block Bitcoin purchases with its credit cards

Jay Crypto

Blogger

Not once we heard that some of the most important banks, in terms of the number of customers, are considering restricting Bitcoin and other cryptocurriencies purchases with their credit cards. Bank of America could be among the first to do this, which could eventually lead to various restrictions or limits.

One of the bank’s spokespersons told the above-mentioned source that they’re currently “reviewing their policies” related to purchasing cryptocurrency, but refused to give any specific deals.

They are not alone!

Bank of America is not the only institution planning this. Citigroup Inc. is currently reviewing the situation, but they haven’t changed their policy. However, they “will continue to monitor this evolving space”, in the United States, said a person familiar with the bank’s upcoming plans regarding Bitcoin and other digital assets.

This Thursday, The Wall Street Journal reported that Capital One Financial Corp. is one of the first banks to already take measures in this direction. Customers can’t use their credit cards to buy Bitcoin or Ethereum anymore, as the bank wants to “limit mainstream acceptance and the elevated risks of fraud, loss, and volatility.”

All these reactions from banks come after the past few months, when Bitcoin and other altcoins have significantly grown in popularity. JP Morgan Chase & Co CEO Jamie Dimon described this entire craze as similar to tulip mania, as a side note.

An absolute high, reached by the end of 2017

Near the end of December 2017, the price of one Bitcoin reached almost $20,000, but in the meantime lost a lot of value, after a wave of rumors regarding a possible trading pan in Asia.  We’re talking about an almost 50% loss, but the currency is still more than 1000% up since the end of 2016.

Despite Bank of America and other companies’ vision regarding cryptocurrencies, Bitcoin was widely accepted on Wall Stree with both the CME Group Inc. and the Cboe Globe Markets. Last month, it started trading in cash-settled Bitcoin futures.

In this very moment, the world’s most popular crypto coin is trading at $11,250.40, but a few days ago, when the market crashed, it was close to $10,000, something which definitely scared investors.