TD, BMO block customers from purchasing cryptocurrencies on credit cards

By zaymalz malz

According to The Canadian Press, Bank of Montreal (BMO) has become the second leading Canadian bank to ban its customers from purchasing cryptocurrencies like Bitcoin on their credit cards, following a similar announcement from Toronto Dominion (TD) Bank last month.

The bank stated that the decision was made following an evaluation of cryptocurrencies as part of its regular security measures. Within this, cryptocurrencies were deemed to be a volatile market that could expose customers to substantially higher levels of debt than they are able to pay as a result of potential sudden drops in value.

See also:

The move comes in the wake of a significant decline in the price of Bitcoin throughout 2018, having dropped from its all time high price of almost USD$20,000 to its current price of just over $8,000.

The fall in price has also come with renewed skepticism, with the Head of Global Economics & Strategy at Allianz Global Investors, Stefan Hofrichter, having claimed that Bitcoin “has no intrinsic value”.

“From our perspective, bitcoin has serious flaws: its trajectory resembles a textbook case of a financial-market bubble, and it is lacking several key qualities that would qualify it as a currency,” said Hofrichter.

The move from both TD and BMO follows moves made by several US banks to stop allowing cryptocurrency purchases on their own customer’s credit cards.


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI