Lloyds has banned customers from using its credit card to buy Bitcoin as the bank fears account holders could be left in debt as the digital currency’s value drops.

The banking group, which owns Halifax, MBNA and Bank of Scotland, is reportedly the first in Britain to stop its customers from using credit to buy Bitcoin, a cryptocurrency which has dropped in value by half in recent months.

Bitcoins are a digital currency which allows customers to send payments to each other without having to go through a third party. There are no more than 21 million Bitcoins in circulation at one time. Its popularity surged last year, which led to its value peaking at 20,000 USD, or £14,465, in December. But Bitcoin’s value has slid in recent weeks. On Sunday, when Lloyds made its announcement, a Bitcoin was worth 8,000 USD, or £5,700.

A spokeswoman for the banking group said: “Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies.”

Banks in the US, South Korea, China, Russia and India have called for the untraceable currency to be regulated, while France’s finance minister wants to see tougher rules around its use.

Facebook has banned adverts for Bitcoins on its newsfeed, after it was criticised about scam posts circulating on the social network.

Critics of the currency say rogue states and criminals have used Bitcoins to make secret transactions, or paid with them on the ‘Dark Web’ to buy illicit items.

Despite the slide, Bitcoin’s current value is significantly higher than its 900 dollar (£640) position recorded in January 2017.