Banking giant Wells Fargo has confirmed that its customers will not be allowed to use their credit cards to purchase cryptocurrency, according to a report from CBS News. A bank spokesperson suggested that the bank made the decision after reviewing the “risks associated with this volatile investment.”
Wells Fargo now joins other major credit card issuers that have implemented similar bans in 2018, including Capital One, Citigroup, Bank of America, and JPMorgan Chase. Those banks have cited fears that volatility in the cryptocurrency markets could leave their customers unable to repay their credit card balances.
Those concerns appear to have been justified, as 2017 research indicated that nearly a fifth of all Bitcoin investors had used their credit cards to invest in the cryptocurrency. More than twenty percent of those customers failed to repay their balances – indicating that many of them may have lost money on their investments.
The Wells Fargo purchase ban comes as the cryptocurrency markets have shed tens of billions of dollars in value in recent days. Overall, the value of the cryptocurrency market is down hundreds of billions of dollars since the beginning of the year.
Wells Fargo noted that its decision puts the company “in line with the overall industry,” but suggested that the bank will continue to monitor the crypto industry’s evolution and evaluate the issue as needed.