Wells Fargo banned the purchase of bitcoin using credit cards.

Following a number of other major financial institutions in the US, the financial company Wells Fargo & Co announced the ban on the purchase of bitcoin and other crypto-currencies using its credit cards, according to Bloomberg.

While the ban on the purchase of crypto currency will act, Wells Fargo "will continue to assess the problem as the market develops," said spokeswoman Shelley Miller.

Thus, Wells Fargo joined Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp., which also limited the purchase of crypto currency by using their credit cards in February, citing market volatility and credit risks.

As representatives of the organizations noted then, they are worried that they will be "hooked" if, by acquiring a crypto currency, the client loses money and can not repay the loan.

According to last year's research by LendEDU, approximately 18% of investors buying bitcoins used a credit card to purchase. Of these, 22% could not pay off the balance after buying the tokens.

Recall that in December 2017, the head of equity funds Wells Fargo Securities, Christopher Harvey, said that the collapse of the crypto-currency may have a very negative impact on the traditional stock markets.

source: https://forklog.com