Bank of America & JP Morgan ban crypto purchases on credit card

[CryptoGirl]

A growing number of big U.S. credit-card issuers are deciding they don’t want to finance a falling knife.

JPMorgan Chase & Co. and Bank of America Corp., the nation’s two largest banks, said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. JPMorgan, which will implement the ban Saturday, doesn’t want the credit risk associated with the transactions, said Mary Jane Rogers, a spokeswoman for the firm.

Bank of America told staff in a memo that it will start declining credit card transactions with known crypto exchanges today. The policy applies to all personal and business credit cards issued by the bank. The move doesn’t affect debit cards, according to Betty Riess, a spokeswoman for the Charlotte, North Carolina-based lender.

Allowing purchases of cryptocurrencies can create big headaches for card lenders, which can be left on the hook if a borrower bets wrong and can’t repay. Banks also are required by regulators to monitor customer transactions for signs of money laundering.

https://www.bloomberg.com/news/articles/2018-02-02/bofa-to-decline-all-cryptocurrency-transactions-on-credit-cards

[nas.crypto]

Seems a direct war between crypto and mainstream banks

[Domithra]

The war has just began. However, cryptocurrency will win at the end of the day due to its Block chain decentralization. The people will get to understand it better as the power is given to them over their financial lives. And lo, cryptocurrency is the future