Bank of America Becomes the Latest Credit Card-Issuer to Ban Bitcoin

U.S. banks really aren’t big on bitcoin. That’s the inference to be drawn from a widespread crypto crackdown led by major financial institutions. Bank of America, the country’s second largest bank, is the latest player to give bitcoin the thumbs down, joining JP Morgan Chase and Citigroup in seeking to distance itself from cryptocurrency purchases made with credit card. In addition, Visa and Mastercard are now classifying Coinbase deposits as “cash advance” instead of “purchase”, adding an additional 5% fee.

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Banks and Bitcoin Don’t Mix
For all the progress bitcoin has made in gaining mainstream recognition over the past 12 months, there’s a growing sense that the world of traditional finance is pushing back against cryptocurrency. That’s not to say that major banks feel directly threatened per se. Nevertheless, the climate is very much one of mistrust, caution and self-preservation, in keeping with the conservative nature of these age-old institutions. If bitcoin is to prosper, it will need to do so without the support of many of the financial organizations that are capable of providing an onramp to the world of decentralized currencies.