Buying cryptocurrency with credit cards banned by JPMorgan Chase

Many of the banks, as well as financial companies, are actually trying to discourage investors as well as traders from buying cryptocurrencies. In a step which can be attributed to the same cause, many of the international banks like JPMorgan Chase, Citigroup, Bank of America have banned the usage of the credit cards for buying cryptocurrencies.This has created a tensed environment in the cryptocurrency space, especially for new investors.

As per the statement of the banks on January 15, JP Morgan stated that they were allowing their customers to buy the cryptocurrencies with the help of credit cards. On the other hand, Bank of America and Citigroup stated that they were reviewing their policies pertaining to the usage of credit cards for buying cryptocurrencies.
According to a recent statement by Citigroup, they no longer allow the usage of their credit cards for the purchase of cryptocurrency. On the other hand, Bank of America is also declining the credit card transactions which are pertaining to cryptocurrency buying.
Bad news continues for cryptocurrencies:

The recent spate of bad news caused the cryptocurrency Bitcoin to fall below $ 8000 for the 1st time around. When the banks are allowing the users to buy cryptocurrencies till a fortnight back, Bitcoin was trading around $ 11,700.

Earlier, the CEO of JPMorgan Chase had stated that he believes Bitcoin to be nothing more than a fraud. Since then, much water has flown under the bridge and some of the financial companies have even started offering Bitcoin futures or solutions to their customers. However, this latest round of ban would surely hurt the cryptocurrency as most of the users would not be able to use their credit cards in order to buy cryptocurrencies. However, these are just 3 of the banks and they would not most likely deal a body blow to the entire range of cryptocurrencies as the buyer of these cryptocurrencies are spread all over the world.

With the tightening squeeze on cryptocurrencies and especially the payment methods, it remains to be seen whether the cryptocurrencies are able to survive this bad news or not. It is important for the normal traders as well as retail investors to buy cryptocurrencies so that the prices are sustained. As the momentum falls, the prices of these cryptocurrencies would also fall which can create a downward or negative momentum in cryptocurrencies making them lose more value.

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.

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