Latest in Gear

Image credit: Shannon Stapleton / Reuters

You can't buy bitcoin with Wells Fargo credit cards anymore

It's the latest bank to block cryptocurrency purchases on credit.
191 Shares
Share
Tweet
Share
Save

Sponsored Links

Shannon Stapleton / Reuters

Wells Fargo is pumping the brakes on customers using their credit cards to buy bitcoin -- the bank has banned credit card cryptocurrency purchases. However, this isn't a permanent measure, as Wells Fargo will monitor the crypto market and reassess the issue as needed, Bloomberg reports. Wells Fargo joins Bank of America, JP Morgan Chase and Citigroup, along with some UK banks, in banning credit crypto purchases.

The volatility of the cryptocurrency market makes it a risk for banks to let customers buy bitcoin and etherium on credit; it's easy for someone to buy more in crypto than they can afford to pay on their card. If coin valuations take a sharp downturn (as we've seen with bitcoin's fall this year), so too can the bank's chances of recouping that money. A LendEDU study last year showed that 18 percent of bitcoin buyers snapped up the digital currency on credit, and of those, 22 percent could not pay off their balance.

That's not to say you can't use a credit card to pick up a prepaid debit card and buy bitcoin that way. The block won't really stop anyone from buying cryptocurrency who wants to throw away their money get in on the craze. But it might cause some to reconsider whether bitcoin is a smart investment.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
191 Shares
Share
Tweet
Share
Save

Popular on Engadget

Hulu's 'Castle Rock' season 2 teaser shows the origins of 'Misery'

Hulu's 'Castle Rock' season 2 teaser shows the origins of 'Misery'

View
YouTube is shutting down its TV-friendly web interface

YouTube is shutting down its TV-friendly web interface

View
SIM-based attack has been used to spy on people for two years

SIM-based attack has been used to spy on people for two years

View
Discord is pulling its subscription service's free games library

Discord is pulling its subscription service's free games library

View
Deluge of Pixel 4 photos confirms a few of the phone's key specs

Deluge of Pixel 4 photos confirms a few of the phone's key specs

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr