More and more financial institutions are being opposed to the digital variables. The concerns over the use of cryptocurrency has directed three U.S. leading vectors in the banking system to come to a single conclusion: to ban!
We are talking about JPMorgan Chase & Co., Bank of America Corporation and Citigroup Inc. All these financial institutions have decided to ban customers from purchasing any cryptocurrency using the credit cards.
When did it happen?
The spokeswoman of the JPMorgan Bank, Mary Jane Rogers has announced on 3 February 2018 about the bank’s final decision. The main reason is the high risk associated with the depreciation of digital currencies.
We want to remember you that in September 2017, Jamie Dimon- the CEO of JPMorgan Chase argued that “If we had a trader who traded Bitcoin I would fire him in a second for two reasons. One, it’s against our rules. Two, it’s stupid!”. That period, he created a revolt among users and investors. However, he changed his opinion. On 9 January 2018, Jamie Dimon announced in an interview that he regrets about his words spoken in September, but anyway doesn’t intent to invest in it.
The Bank of America has positioned itself in opposition since February 2, 2018. It refuses the transactions made by the credit card holders. However, the acquisition of cryptocurrencies seems not to be restrictive for debit cards as well.
Also, on 2 February 2018, the Citigroup Company joined the same conclusion as the Bank of America. The bank’s spokeswoman Jennifer Bombardier mentioned that “We will continue to review our policy as this market evolves,” company spokeswoman Jennifer Bombardier said”.
Which are the main reasons?
The banks’ concerns are that users will become unable to pay their debts, and financial institutions will lose significantly. Another reason is because of the hacker abuse that can combat the customers’ personal information to obtain financial resources.
Note that the rules in force oblige US financial institutions to control any transaction made by their users in order to prevent the money laundering.
On 2 February 2018, for the first time since last quarter of 2017, the Bitcoin’s price decreased under $ 8.000. Numerous investors have lost their trust in cryptocurrency.
What do you think will be the consequences of this turn of banks?