USA: Banks stopped buying cryptocurrencies

As reported by intelligence service Bloomberg, several major US banks have announced that they will allow no more purchase of cryptocurrencies with their credit cards from this Sunday because of possible price losses. Customers of these banks must use one of the offered debit cards, in which purchase price is debited directly from the bank account.

Clients of the US investment banks JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. can no longer buy cryptocurrencies with their credit cards from today. Companies do not want to “finance a falling knife,” as it’s said. The spokeswoman for Citigroup, Jennifer Bombardier, was quoted as saying that the company’s own guidelines will now be reviewed because the crypto market has developed so rapidly.

The new lock applies equally to credit cards of private and corporate customers. With the so-called debit cards, however, crypto currencies can continue to be purchased, because the amount is debited immediately from the account. For the bank as well as the credit card operator there is no risk from purchase to billing due to possible price fluctuations. The credit card companies are worried that they might be left stranded because of the large price losses of various coins.

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For the owners of credit cards, the lock also serves their own security, as this also cybercriminals with stolen credit cards can no longer acquire cryptocurrencies. In addition, the authorities recently called on banks to make all their customers’ transactions visible. However, in the case of buying cryptocurrencies, the authorities can no longer effectively follow the trail of money.

David Nelms, the CEO of the US financial services company Discover, told Bloomberg in an interview in late January that there were good reasons for such a credit card suspension. His company also has no interest in the crypto market and would not support it. Whether this attitude will change in the future, however, depends on the needs of the majority of its customers, so Nelms. So it remains to be seen whether there will be a change of direction in this regard.

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