Wells Fargo is prohibiting its customers from using its issued credit cards to buy cryptocurrency. Wells Fargo joins Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp., which stopped cryptocurrency purchases on their credit cards in February, citing market volatility and credit risks. Lenders have said they’re worried they’d be left on the hook if a borrower lost money on a digital currency bet and couldn’t repay. A study conducted by LendEDU last year found that 18 percent of Bitcoin investors used a credit card to buy the purchases. https://lendedu.com/news/wells-fargo-says-no-to-cryptocurrency-purchases-on-its-credit-cards/
Of those, 22 percent couldn’t pay off their balance after buying the digital coin. Bitcoin, the largest cryptocurrency, has lost more than half its value this year, dropping to $6,736.89 at 11:17 a.m. in New York. Investors’ enthusiasm for the digital coins partly due to a string of cyber hacks and concern over a clampdown on trading of such currencies in China.