The British banking giant remains skeptical of cryptocurrency and will not allow clients to purchase crypto with the bank’s credit card after June 27.
At a time when almost every major banking institution in the world is embracing cryptocurrency, Barclays is taking a different approach, revoking clients’ ability to buy crypto with their credit cards.
According to its website, Barclaycard will begin blocking crypto transactions made with the service on June 27, “because a fall in the price of crypto assets could lead to customers finding themselves in debt they can’t afford to repay.”
It appears that clients can continue investing in crypto through bank wires and debit cards, but credit card payments will not be accepted. Despite the crackdown, Barclays reported more than $130 million worth of IBIT shares on its balance sheet, acquired during Q4 2024.
The move comes as most major financial institutions have recently increased their risk appetite when it comes to cryptocurrency. Even JPMorgan, whose CEO, Jamie Dimon, is a renowned Bitcoin bear, has published a whitepaper for its newly branded stablecoin alternative, known as “deposit tokens.”
News also broke today that the Federal Housing and Finance Agency (FHFA) may consider crypto assets in mortgage assessments in the future, indicating further legitimization of the asset class as suitable collateral for loans.
Michael Saylor, CEO of Strategy, applauded the move, saying, “Bitcoin has been recognized as a reserve asset by the U.S. housing system — a defining moment for institutional BTC adoption and collateral recognition.”
This change would allow potential single-family home buyers to leverage their cryptocurrency in the bank’s loan decision-making process. The lenders would only be allowed to consider assets that “can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws.”
