Barclays, one of the UK’s largest banks, has announced it will block cryptocurrency purchases made with its credit cards starting June 27.
The decision, published on Barclaycard’s website, cites concerns over customer debt, highlighting the risk of crypto price drops leading to repayments people may not afford. While credit card use is being restricted, Barclays clients can still buy digital assets using debit cards or bank transfers. The move signals the bank’s continued caution toward crypto, even as the broader financial industry grows more accepting of digital currencies.
Barclays Takes a Cautious Stance
Unlike many of its global peers that are opening up to crypto, Barclays is doubling down on a conservative approach. The bank stated that limiting credit card purchases is a preventive measure to protect consumers from the volatility of digital assets, which could expose them to excessive debt. This policy will take effect by the end of June and will apply to all Barclaycard holders.
Interestingly, this decision comes shortly after Barclays revealed that it had invested over $130 million in IBIT shares during Q4 2024. IBIT is BlackRock’s spot Bitcoin ETF, which means that while the bank restricts personal crypto buying through credit, it still sees value in institutional exposure.
Wider Financial Sector Embracing Crypto
At the same time, other major institutions are taking steps toward crypto adoption. JPMorgan, historically critical of Bitcoin, recently released a whitepaper introducing its stablecoin alternative called “deposit tokens.” These would act as a blockchain-based payment tool within regulated environments.
In the U.S., regulators are also showing signs of warming up to crypto. The Federal Housing and Finance Agency (FHFA) is reportedly considering allowing crypto assets to count as collateral during mortgage application assessments. This would mark a major milestone for the integration of crypto into traditional finance.