JP Morgan, Citigroup and Bank of America Ban Customers from Buying Bitcoin Using their Credit Cards
Three major banks in the United States have decided to take a very important stance against cryptocurrencies. Apparently, this decision also led to a huge drop in the price of bitcoin. The three giant financial institutions, JP Morgan, Citigroup and Bank of America, have decided to prohibit their customers from buying bitcoin with their credit cards.
This is something unexpected and without a doubt a very unfortunate development for all the supporters of bitcoin and of the cryptocurrency market.
The three banks' clients cannot purchase bitcoin using their credit cards
JP Morgan, Citigroup and Bank of America have claimed that they will ban customers from buying bitcoin because of the very high volatility of the cryptocurrency. This means that customers who purchase the digital currency because of its huge price hikes could experience some great losses given bitcoin's high volatility.
The fact that the volatility of the digital currency is growing is no shock. In fact, the price of bitcoin has just decreased below $8,000, going close to the $7,000 price range for the first time since November, 2017. And to give more context to the high volatility of the market it is worth mentioning that the price of bitcoin was close to $20,000 in December, 2017.
It seems that every decision taken regarding the cryptocurrency market has direct impacts on the value of digital currencies. Some of the biggest price drops experienced by the digital currency have been linked to the proposed legislation that has been in works in several countries around the world.
Well, the fact that these three banks are on the list of financial institutions which have decided to ban bitcoin is not shocking at all. They have previously warned about the digital currency and the CEO of JP Morgan actually said that bitcoin was a "fraud."