J.P. Morgan and BOA ban people from purchasing Bitcoin with Credit Cards

JP Morgan Chase
Flickr | eflon

J.P. Morgan Chase, BOA (Bank of America) and Citi, The three biggest bank and major credit card issuer of United States decided to halt the use of credit card for the purchase of cryptocurrencies like Bitcoin, ethereum and litecoin etc.

“At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved,” a J.P. Morgan Chase to CNBC. “

The decision to halt Bitcoin purchases with certain credit cards comes after a steep and unparalleled run-up at the end of 2017, which has since been followed by a sharp decline in the value of Bitcoin.

The over-hyped digital money had reached 2,000 percent growth in two years to reach that record of $20000. But Bitcoin has suffered in the last few weeks, briefly falling below $8,000 Friday for the first time since late November.

Citigroup said in an announcement that it has “settled on the decision to not allow credit cards buy cryptocurrencies. They will keep on reviewing their strategy as this market of Bitcoin evolves and advances.

Just last week, Chase said it was allowing customers to buy Bitcoin and ethereum with its credit cards, while Bank of America and Citigroup said they were looking into the scheme that allows customers to buy Bitcoin with their credit cards.

This ban isn’t new prior this year in January, Capital One Financial said it has chosen to boycott Bitcoin buys with its cards. Discover Financial Services has adequately restricted the Bitcoin buys with its credit cards since 2015.

Ram Goyal

Managing Editor

He is Managing Editor at frozencast. Music is his life and he primarily writes on Entertainment and Tech topics.