The UK’s largest bank has decided to get ahead of customers investing too much into cryptocurrency, by banning the purchase of bitcoin through their credit cards.
The value of the virtual currency has been falling rapidly over the last two months, making the prospect of customers purchasing bitcoin in the hopes of getting rich less and less worthwhile.
This hasn’t stopped Brits from doing just that, however, and so Lloyds banking group is hoping to protect it’s 9 million credit card customers (and themselves) with an outright ban.
Bank of America, JP Morgan Chase and Citigroup have all banned cryptocurrency purchase on their credit cards, thought to be due to the current volatility of virtual coins.
It’s a way for the banks to distance themselves from any negative consequences in the future – another example of institutions approaching the cryptocurrency boom with some degree of trepidation. This way, they avoid having to deal with customers who invest more than they can afford, as well as other fraudulant activity.
“We will continue to review our policy as this market evolves,” said Citigroup spokeswoman Jennifer Bombardier.
Transactions at Bank of America have already started to be declined, reports Bloomberg, and the policy appies to personal and busines cards. Citigroup announced on Friday that it would be doing the same, and JP Morgan Chase implemented the ban over the weekend.