People familiar with the matter said that U.S. payment giants Visa and Mastercard are putting a halt to plans to form new partnerships with crypto firms following a string of high-profile failures last year.
The crypto sector experienced a stunning turnaround in 2022, as the bankruptcies of industry titans FTX and BlockFi, as well as the controversial Terra disaster, shook investors and increased regulatory scrutiny by a significant margin.
According to Visa, previous notable failures in the crypto industry serve as a crucial reminder that this kind of technology has a long way to go before it can become an integral part of mainstream payments and financial services. However, the crypto strategy and focus for the company shall remain unchanged, even if there is a temporary pause.
For its part, Mastercard indicated that efforts to continue focusing on blockchain technology alongside the extraction and analysis of useful data pertaining to the implemenation of said technology is still very much the focus going forward, even with the temporary setback.
In April 2022, Mastercard collaborated with crypto lender Nexo to launch a crypto-backed payment card. Later on in the year, just a month after announcing an expanded partnership with the exchange, Visa terminated its global credit card agreements with FTX.
Mastercard And Visa Get Cold Feet As Both Companies Pause Crypto Push
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
September 16,2024
Worldcoin Being Investigated By Singaporean Authorities For Potentially Violating Regulations
September 16,2024
Flappy Bird May Be Revived In Web3 Format Despite Original Creator Not Being Involved
September 16,2024
Web3 Fundraising Deals - 10th To 16th September, 2024
September 15,2024
BTC Finally Starts To Recover As Total Crypto Market Cap Up By $70 Billion
September 14,2024
Coinbase Wrapped BTC Reaches Impressive Milestone In Just 24 Hours
September 13,2024
United States SEC Admits Several Cryptocurrencies Are Not Securities
September 13,2024
OpenAI Releases New AI Model Series To Support Smart Contract And Blockchain Capabilities
September 12,2024
Inaugural Congressional Hearing About DeFi Takes Place
September 12,2024
Cardano Hits New Network Milestones As Hoskinson Debunks Faulty Staking Claims
September 11,2024
Nucoin Will Be Discontinued As Holders Given Option To Convert To BTC Or USDC
September 11,2024
PayPal And Venmo Will Integrate Ethereum Name Service For Crypto Transfers
September 10,2024