Bans on Bitcoin Credit Cards Introduced by Bank of America, Citigroup, and JP Morgan

Banks from the United States are lining up to stop customers from purchasing bitcoin through the use of credit cards, as wild price fluctuations continue on the world’s biggest cryptocurrency.

According to CNBC, last night, Bank of America and JP Morgan Chase both said that they would ban the practice, which could leave some customers chasing the big price increases which bitcoin has seen over last year with huge losses. According to Bloomberg, Citigroup also joined in the said ban,

Credit card providers which permit transactions with cryptocurrency exchanges could be exposed to higher risk than the usual due to the massive volatility of the assets.

According to the OnchainFX website, Bitcoin has observed its price surge by over 700 percent over the past year. However, the skeptics month has seen its dollar price drop by more than 40 percent as fears rise of what various economists have dubbed as a bubble spread.

Yesterday, for the first time since November, the price of bitcoin dropped below the $8,000 mark after increasing to almost as far as $20,000 last December, amid a broad decline in dollar values across the world’s major cryptocurrencies.

The chief executive of JP Morgan, Jamie Dimon, has been among the most known sceptics of digital currencies, infamously calling bitcoin as a “fraud.”

During an interview with Bloomberg Television yesterday, an economist from the New York University who is credited with having predicted the financial crisis, Nouriel Roubini, said that bitcoin is the “mother of all bubbles,” and added that he expects regulators across the globe to crack down on the lightly regulated space.