Clients who have a Wells Fargo credit card will no longer be allowed to use it to buy bitcoin and other cryptocurrencies. The California bank confirmed the new policy in an email, saying Wells Fargo would “continue to evaluate the issue as the market evolves.”
The move is “due to the multiple risks associated with this volatile investment,” said the spokesperson, who also noted “this decision is in line with the overall industry.” The bank follows Bank of America, Citigroup and JPMorgan Chase, all of which banned cryptocurrency purchases on their credit cards in February. Capital One in January also said it was declining credit-card purchases of cryptocurrency.
Lenders have voiced concerns that they’d have to swallow the loss if a customer lost money buying digital currency and was unable to cover the purchase.
Wells Fargo is the world’s second-largest bank by market capitalization and the third largest bank in the U.S. by total assets.
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