America's third-largest bank by assets, Wells Fargo, has banned its clients from buying cryptocurrency using the bank's credit cards.
The same decision was previously made by J.P. banks. Morgan, Citi and Bank of America, fearing that after losing funds due to volatility, customers will not be able to repay their loans.
“Customers can no longer use Wells Fargo credit cards to purchase cryptocurrency,” a bank spokesperson said in a statement Monday. The decision was made in accordance with the bank's internal policies related to the risks posed by volatile investments. “We will continue to monitor the cryptocurrency market and will re-evaluate this issue as the market develops,” the spokesperson said.
Bitcoin volatility has decreased compared to last year, but price swings are still very large, resulting in significant gains and losses. The coin's price fell to $6,700 on Monday after hovering around $7,500 for a week.
According to fortune.com
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