BMO Restricts Credit Card Purchases with Cryptocurrencies
BMO joins other banks that have banned credit card crypto purchases citing high risks and volatility. The bank is, however, among other banks working with IBM for a blockchain-based trade platform to improve security and speed of transactions.
The Bank of Montreal (BMO) customers will no longer purchase digital currencies using BMO Mastercard credit cards. It joined TD Bank which banned digital currency purchases with credit cards last month
The Canadian bank did not give a reason for the ban, but most Canada and the U.S.-based banks have recently taken similar move. However, due to imminent risks and volatility in dealing with cryptocurrencies.
For instance, all top five banks in U.S. did ban use of their credit cards in purchasing cryptocurrencies although people could still buy with debit cards.
Other banks either looking into their digital currency transactions using credit cards include Scotiabank, Lloyds bank, Citigroup, Bank of America and JP Morgan Chase
It is easier for any bank to abandon Bitcoin and any other cryptocurrencies at least for now in their lowest moments, but not so when prices show signs of recovery. However, from the outset, banks do not also allow customers to buy stock with credit cards.
Nevertheless, the bank is still pursuing its blockchain solution dream. It partnered with IBM last October to build a blockchain-based global trade platform called Batavia. Three other banks are also working with IBM on the same solution.
Basically, Batavia builds on the work by UBS and IBM to build a trade finance platform on the blockchain.
The blockchain solution will help banks improve speed and security of transactions.
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