Various banks around the world now prevent their own clients from making specific credit card purchases. This is not a positive development by any means. At the same time, it only further confirms how little control people have over money. In the US, four major banks now prevent their customers from buying Bitcoin with a credit card. This applies to the Coinbase exchange, and potentially others as well.
4. Capital One
Most people know the name Capital One, as it is one of America’s biggest banks. They also run a wide variety of advertisements on television to showcase the versatility of their banking services. Unfortunately, users who have a credit or debit card issued by Capital One will have a lot of problems when it comes to purchasing Bitcoin as of right now. The bank made the unfortunate decision to block all Bitcoin-related card transactions for the foreseeable future.
It is evident JPMorgan has never been a big fan of Bitcoin. When company CEO Jamie Dimon called Bitcoin a fraud, most people knew this bank would be in line to block all cryptocurrency-related activity on its platform at some point. That decision didn’t take long, as JPMorgan Chase customers cannot use their payment cards to purchase Bitcoin from the Coinbase exchange. Rest assured this “ban” will extend to other exchanges in the near future.
With other major players turning their backs on Bitcoin, Citi has had no choice but to follow their lead. Although the company never publicly stated it prevents customers from buying Bitcoin with a credit card, that does appear to be the case in the US right now. It is another problematic development in the fight between financial institutions and cryptocurrency. Rest assured this will not be the last time we see banks take such a harsh stance against Bitcoin either. This industry has been a thorn in the side of banks for quite some time now.
1. Bank of America
When America’s flagship bank decides to pull the plug on Bitcoin purchases, things are not looking all that good. With BoA actively blocking customers from buying Bitcoin with a credit or debit card, it is evident obtaining this elusive cryptocurrency will need to involve a bank transfer, which makes the whole ordeal a lot more time-consuming and far less convenient. Whether or not these decisions will dissuade BoA customers from buying cryptocurrencies remains to be determined.
What can Users do to Bypass these Restrictions?
For people who must purchase Bitcoin or other cryptocurrencies with a payment card, there is very little they can do right now. Switching financial institutions is always an option, but it is evident this problem is not just with the banks themselves. Both Visa and Mastercard have made it very clear they do not take kindly to any cryptocurrency-related transactions happening on their networks. Whether third-party card providers or consumers are buying Bitcoin, it’s something both companies will actively try to prevent from happening as much as possible.
Additionally, we have seen multiple US-based banks block wire transfers to and from cryptocurrency exchanges as well. The banks will not give up the fight against cryptocurrency all that easily, as they hold all of the cards right now. With payment cards and wire transfers not an option in some cases, the only alternative is buying or selling Bitcoin with cash. That’s far from an ideal situation, but it’s a viable option for smaller amounts these days. Especially with all prices plummeting, it is only normal that people will try to explore the cash option even more than before.