The US financial company Wells Fargo & Co has reportedly banned buying of bitcoin and other cryptocurrencies via Wells Fargo credit cards.
According to the news reports, the company will keep studying this matter with the market development, while cryptos will be subject to the ban.
Thus, Wells Fargo has become another company to restrict cryptocurrency operations following such giants as Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp. For reference, the latter restricted buying of digital coins via their credit cards back in February citing high market instability and default risks.
The company representative said that they were concerned about a possibility to fall into a trap when their clients lose all money after buying cryptos and become unable to pay back debts. For reference, about 18% of investors acquired bitcoin via credit cards and 22% of them failed to repay the loan after the purchases, as showed the study of LendEDU.
Notably, the head of equity strategies at Wells Fargo Securities said last year that the crypto collapse could have a horrible impact on the traditional stock markets.