New entrants to the cryptocurrency market face a more difficult avenue of entry today, as customers at JPMorgan Chase, Bank of America, and Citigroup will no longer be able to use their credit cards to purchase cryptocurrencies.
JPMorgan Chase confirmed its new polocy to CNBC, explaining that customers will no longer be able to leverage their credit cards to purchase cryptocurrencies – just days after the company conversely confirmed on January 25th that it would allow such purchases to take place.
A company spokesperson informed JPMorgan Chase that “At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the issue as the market evolves.”
Both Bank of America and Citigroup have followed with announcements that each firm is reviewing its policies, and for the time being would not permit the purchase of cryptocurrencies made through credit.
The news comes amidst a slump in the cryptocurrency market after a mass selloff, where Bitcoin – at press time – presently trades at values north of $8K USD.
Similarly, the news is an about-face from both JPMorgan Chase and Bank of America – both firms have previously expressed interest in blockchain-based projects.
JPMorgan Chase CEO Jamie Dimon, one of Bitcoin’s longest-serving critics, recently admitted that he sees the blockchain as bearing significant potential.
Bank of America, similraly, has been awarded with a new patent for a cryptocurrency exchange system.
The system, as described in the patent, would allow the conversion of one virtual currency into another automatically by gathering external information of current digital currency exchange rates, and using that information to calculate a new ‘optimal’ rate.
Both JPMorgan Chase and Bank of America have offered to review their policies on cryptocurrency purchases as the market stabilizes.
Have your say!
What are your thoughts? Should banks promote the purchase of cryptocurrency through credit cards, or prohibit it? Be sure to let us know your opinion on Twitter – join the conversation @coininsidercom!