In a recent report, popular financial firm Wells Fargo has declined cryptocurrency purchases on its credit cards. This comes as shocking news to crypto lovers as they can no longer make the bitcoin transaction using credit/ debit cards issued by them.
The main reason behind the firm’s decision to ban is ‘Volatile Market’. With this, the Wells Fargo is following footsteps of companies which have barred cryptocurrency investments using their credit cards. The list includes Bank of America, CitiGroup, JP Morgan who earlier this year took a decision to say no for cryptocurrency purchases.
Well said that the company is still processing the situation and as said by a spokeswoman, Shelly Miller,
The company will continue to evaluate the issue as the market evolve
This trend of banishing cryptocurrency by companies might continue until the market reaches its stabilization. Furthermore, it has been noted that what if the borrower loses money in digital currency bet, the lender will not have any track of it and difficult to get it back. This makes customers vulnerable to more number of hacks and companies want to avoid such situations.
To elaborate on statistics, a research conducted by LendEDU institute says that 18% of people throughout the world investing in bitcoin make use of credit card to fund their purchases. Of them, 22% cannot pay their balance after their purchases
The crux of all this is about decentralization which comes as an advantage by trading cryptocurrency but brings in security issues. For instances, MtGox hack from Japan or CoinCheck heist by the employee of the company.
Although more and more finance or banking sector companies are willing to accept cryptocurrency usage but still remains to be seen where industry head towards.
So readers, what do you think of this decision by Wells Fargo? Let us know your thoughts in comments.
