One of the best things about the crypto community is how easy it is to use fiat currency in any part of the world with a quick transition to the corresponding platform. However, Wells Fargo has been a stick in the mud for quite some time and is the latest financial institution to keep their clients from buying tokens with the use of their credit cards.
Wells Fargo is the third-largest bank in the United States, holding $2 trillion in assets by the end of 2017. While they have not had a policy against crypto purchases with Wells Fargo credit card holder in the past, they are now declining any initiation of a crypto purchase, if attempted. A spokesperson for the bank released the following statement on June 11th:
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
Even though the spokesperson agreed that the bank will reexamine their decision later on, they are one of the many credit card issuers that are putting up this blockage. Other banks with these policies in place include JPMorgan, Bank of America, and Citigroup, which means that Wells Fargo completes the group of the top four financial institutions with this policy.
VISA and Mastercard are also capitalizing on this change, imposing fees on the purchases of crypto in the same way that consumers would be charged at an ATM. Some of the reasoning for the decline makes sense, since a major concern is that the buyers risk defaulting on their credit payments, but the tokens would remain.
This is not the first time that Wells Fargo has put an intentional stop to their involvement in the crypto world. In 2017, they withdrew their services from BITFINEX. Ultimately, BITFINEX had to turn to a banking partner in Puerto Rico to maintain their access to financial services.