Wells Fargo, America’s third-largest bank, has recently banned its customers from purchasing Bitcoin or any other cryptocurrencies 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.”
Time to buy the dip?
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-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.
American banks are not the only one 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 the banks of the western countries was also picked up by the Indian banks and two largest card distributors – Citibank and HDFC – barred their customers from not only using the bank-issued credit cards but debit cards too.
However, despite the growing hostility worldwide, multiple major Australian banks remained positive towards the growing 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.