This week, Wells Fargo & Co. announced that it will not allow customers to buy cryptocurrency with its credit cards. This follows other banks’ prohibitions on the use of credit cards for the purchase of cryptocurrency over the past several months.

Some surmise that the prohibition is due to the volatility in the price of cryptocurrencies, like bitcoin, that could put customers at risk to be able to pay the credit card bill after a significant down swing in the price of the cryptocurrency.

Wells Fargo said that it will continue to monitor the issue “as the market evolves.” Its announcement was before the Financial Credit Authority sent its “Dear CEO” letter [view related post] warning banks to increase evaluation of customers that are buying and trading cryptocurrency, which will no doubt have an impact on its evaluation of the situation.

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