The Comminwealth Bank has decided to block attempts to purchase any virtual currency with its credit cards.
“Virtual and crypto-currencies such as Bitcoin have yet to meet a minimum standard of regulation, reliability, and reputation,” the bank said.
The ban came into effect yesterday and extends to both CommBank and BankWest credit cards.
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Bitcoin enthusiasts will still be able to use their debit cards and transaction accounts to buy and sell virtual currencies. But the bank isn’t prepared to wear the risk of extending a line of credit for a financial product which may plummet in value.
“We have made this decision because we believe virtual currencies do not meet a minimum standard of regulation, reliability, and reputation when compared to currencies that we offer to our customers. Given the dynamic, volatile nature of virtual currency markets, this position is regularly reviewed,” the bank said.
Other global banks have made similar moves. Bank of America, Citigroup, Lloyds Banking Group and JP Morgan Chase have all banned crypto purchases using their credit cards.