While the Bank of Montreal (BMO) has not made any public pronouncements we are aware of, the Canadian Bank has apparently decided cryptocurrency is too dodgy for their customers.
This week a poster on Reddit shared a BMO Bulletin (#632) entitled Blocking Cryptocurrency Transactions for BMO Credit Cards, Debit Cards & Interac Online Payment.
“Effective Immediately, BMO will be blocking cryptocurrency merchant transactions. This decision was made due to the volatile nature of cryptocurrencies, and to better protect the security of our clients and the bank.”
Of course, banning all digital currencies also helps mitigate any risk regarding chargebacks that BMO may be ill-equipped to deal with, much less figure out an appropriate exchange rate.
BMO is not the first bank to flee cryptocurrency transactions. Coinbase, one of the largest cryptocurrency exchanges, announced issues with multiple big US banks last month. The difference here appears to be that BMO has gone cold on debit card transactions as well.
Meanwhile, elsewhere in Canada, TMX Group – the operator of the Toronto Stock Exchange, is moving forward with a cryptocurrency brokerage.
The volatility of virtual currencies like Bitcoin has caused some financial types to criticize the coin as a method of payment.