JP Morgan Chase Bank headed by CEO Jamie Dimon, who recently referred to Bitcoin as a “fraud,” has banned crypto currency purchases with credit cards.
Block Cubed has confirmed with a Chase representative that the bank will no longer process purchases with Chase issued credit cards.
Users attempting to purchase Bitcoin, Litecoin, Bitcoin Cash and Ethereum via popular crypto exchanges like Coinbase will see order cancellations resulting from the bank refusing to process the transactions.
According to the Chase representative we spoke with, the bank will no longer accept credit card based cash advance transactions because of extreme “volatility” in the markets.
Of note is that the Fall of 2017 saw a significant correction in Bitcoin following comments from CEO Jamie Dimon, suggesting that official statements from Chase itself may well be part of the “volatility” problem by creating uncertainty and doubt with potential investors.
The bank says that Debit and ACH transactions linked directly to customer bank accounts will still be processed so long as customers have the necessary funds on hand.
Chase may have taken these measures to prevent credit card customers from running up lending balances in the hopes of attaining massive gains on Crypto Currencies. With Cash advance interest rates topping 20% and most crypto currencies having crashed in excess of 50% in recent weeks, it appears Chase is taking preemptive steps to ensure customers don’t over-stretch their credit balances.