“At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved,” a spokesperson from J.P. Morgan Chase said. “We will review the issue as the market evolves.”
Citigroup shared the same sentiment, saying that it had “made the decision to no longer permit credit card purchases of cryptocurrency. We will continue to review our policy as this market evolves.”
Chase made the change despite saying that it would allow its credit card customers to buy cryptocurrencies earlier this month. While Citigroup and Bank of America admitted to needed to review company policies before making a final decision. The controversial choice was revealed after the currency, bitcoin, dropped by more than half of its value of $19,000 last year. Many other cryptocurrencies have been declined as well. Capital One banned cryptocurrency purchases last month. Discover was one of the first banks to ban virtual currency purchases in 2015.
However, other the popularity of the currencies has not diminished and companies are working to make the purchasing cryptocurrency easier for consumers. Square announced that users of its Cash app would be able to trade bitcoin.
“Instant buying (and selling, if you don’t want to hold) of Bitcoin is now available to most Cash App customers. We support Bitcoin because we see it as a long-term path towards greater financial access for all. This is a small step,” Square CEO Jack Dorsey tweeted.
Cryptocurrency payments are currently available to all users, except for those in New York Hawaii, Georgia, and Wyoming. Consumers are currently able to purchase up to $10,000 in bitcoin per week. They are also able to deposit their purchases to other accounts. There are no fees attached to purchases at this time. In exchange for the feature, users will allow their cryptocurrency to be held by Square. Many feel that the setup is not secure, but helpful for users who misplace their phones or passwords.
The company praised cryptocurrency in a statement to TechCrunch and expressed its responsibility to customers: “Cash App empowers people with access to the financial system, and our customers have shown interest in a simple, approachable way to buy and sell Bitcoin. Through our pilot, we’ve learned a great deal about how we can make this experience faster and easier and we’re excited to expand its availability.”
The app, Robinhood, also enabled bitcoin and ethereum in five states and consumers are excited about the debut. More than 1 million people are on the platform’s waitlist.
Coinbase, which is currently of the most popular marketplaces for cryptocurrencies, announced its plans to allow instant purchases of at least $25,000 in bitcoin, litecoin and ethereum with domestic bank accounts last October.