RBC no longer allowing the use of credit cards for cryptocurrency transactions

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RBC is no longer allowing the use of its credit cards for cryptocurrency transactions, according to a notice on its website.

As of early February, the bank had been allowing credit cards to be used in transactions involving cryptocurrency in limited circumstances. “We recognize that regulatory, risk and other external environmental factors relating to cryptocurrency continues to evolve,” RBC spokesman AJ Goodman said in a statement to Bloomberg at the time. “As such, we continue to review our policies to consider how we can best support clients.”

TD Bank also stopped allowing customers to buy cryptocurrency in late February, citing a need to review an “evolving market,” it told the CBC. At the time, RBC said that while it did allow its credit and debit cards to be used for transactions, it warned that a sudden drop in the value of cryptocurrencies could expose them to substantially higher debt levels than they are able to repay.

“We do recognize that regulatory, risk and other external environmental factors relating to cryptocurrency continues to evolve,” an RBC spokesperson said in an emailed statement to the CBC. “As such, we continue to review our policies to consider how we can best support clients.”

According to a report put out by the bank, the cryptocurrency market is expected to reach $10 trillion in 15 years, though one of the challenges to widespread adoption identified includee a potential lack of government intervention.

BetaKit has reached out to RBC for further comment.