Most financial institutions have started developing a positive stance towards emerging technologies such as cryptocurrency and blockchain. Some have even started implementing these technologies within their organizations to offer advanced services to customers while allowing them to trade with cryptocurrencies.
While on the other hand, a popular traditional bank Wells Fargo, established in 1852 has a different view towards Bitcoin and other cryptocurrencies. Wells Fargo offers banking related services to its customers. It also offers mail delivery service via the Pony Express. Recently, Wells Fargo shared its stance by mentioning that the traditional bank will not allow its customers to buy Bitcoin by using their own cash.
The decision of Wells Fargo is different from other popular financial institutions. More and more banking institutions are trying to use crypto-based technology. For instance, CEO of Nasdaq, Adena Friedman trusts digital currency value and also claims that Bitcoin, the top cryptocurrency in the world, will become the ‘global currency of the future.’
CEO of JPMorgan Chase, Jamie Dimon for years did not have a positive approach towards Bitcoin and strongly criticized it. He even attributed digital currencies as a scam. But his perspective regarding cryptocurrency seems to have changed. Interestingly, JPMorgan Chase is now preparing itself to release its first digital currency.
Back in December 2017, when the CME Group began trading with Bitcoin futures contracts, it noticed the promise of Bitcoin.
Wells Fargo, however, seemed to be moving in the other direction. Wells Fargo shared its anti-Bitcoin view of not permitting its customers to transact with digital currencies on Twitter. It replied to a customer’s question saying,
“Thanks for contacting us. Wells Fargo does not permit transactions relating to cryptocurrency.”
The ban imposed by Wells Fargo is different from its vision, which says, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”
By prohibiting its customers from purchasing Bitcoin, Wells Fargo is restricting its customers from a wide range of the needed financial services.
Bitcoin and other digital currencies are unsafe
Wells Fargo decided to impose a ban on buying Bitcoin and other cryptocurrencies back in June 2018. Customers were prohibited to purchase Bitcoin with its credit cards.
Bank’s spokesperson responded over the ban in a statement saying,
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
Wells Fargo believes Bitcoin and other crypto assets are dangerous and variable. Wells Fargo earlier experienced several financial scams, but the US taxpayers had saved the bank.
Wells Fargo became the foremost traditional bank to receive bailout funds- huge amount given in one shot: $25 billion US tax dollars.
In order to fulfill the requirements of its customers, Wells Fargo should change its approach and join with other leading financial institutions over the new economic model to offer decentralized, fast and secure services to its customers.