Wells Fargo Bars Credit Card Holders from Purchasing Crypto

Wells Fargo, America’s third-largest bank, has recently banned its customers from purchasing Bitcoin or any other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term using the bank-issued credit cards.

In a statement on Monday, a spokesperson from the bank said: “Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency.”

With this decision, Wells Fargo joined the likes of a few other Wall Street giants - J.P. Morgan, Citigroup, and Bank of America.

Similar to other hostile banks, Wells Fargo cited the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term-associated risks as a reason for this ban.

“We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry,” the spokesperson added.

Worldwide hostility

American banks are not the only ones in this war against cryptocurrencies. Following the decision of the three Wall Street banks to stop all crypto transactions, Britain's Lloyds Banking Group issued a similar order. Moreover, the hostile move by banks of the western countries was also picked up by Indian banks as two large card distributors - Citibank and HDFC - barred their customers from using not only bank-issued credit cards but debit cards too.

However, despite the growing hostility worldwide, multiple major Australian banks remain friendly towards the ever increasing sector.

Despite the current move, Wells Fargo’s spokesperson assured the bank will continue to monitor the market.

“We will continue to evaluate the issue as the market evolves,” the spokesperson continued.

A dipping market

After achieving record high in January this year, the cryptocurrency market picked up a downward momentum with momentary bulls. Following the recent theft from a South Korean crypto exchange, the struggling market dipped further.

Bitcoin, which touched $20,000 mark last December, is now trading at $6,860, according to CoinmarketCap.com. Moreover, the market capitalization of the entire market fell from its peak of $826 billion achieved in January to only $301 billion.