Visa and Mastercard, both major players in payment processing, have decided to pause their plans to incorporate cryptocurrencies into their services due to the recent market turbulence and regulatory complications.
Reuters reported that, according to people with knowledge of the matter, two major digital payment companies have put the brakes on various upcoming projects and offerings intended to increase their involvement in the cryptocurrency world.
A Visa representative, who requested to remain anonymous, informed Reuters that the recent collapses and current regulatory environment have revealed that the cryptocurrency world still has much progress to make before it can become an accepted part of the traditional payment network.
These massive failures, such as the Terra, 3AC, and FTX disasters, happened in 2020 and highlighted the necessity of suitable regulatory action.
“Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services,”
– Visa Spokesperson
Despite Visa’s plans to cease its crypto activities due to industry issues, a spokesperson maintained that the company’s ambitions in the crypto space remain intact. Furthermore, a confidential source from Mastercard divulged that the firm is committed to employing blockchain technology and constructing more effective payment systems.
Visa and Mastercard in Cryptocurrency
Visa and Mastercard have had a huge impact on the cryptocurrency world, forming several collaborations that have led to the production of crypto payment cards.
Two weeks ago, Wirex joined forces with Visa to expand its presence around the globe and make crypto payment cards available for customers in over 40 nations. Last October, Visa submitted two trademark applications to the United States Patent and Trademark Office which indicated their intentions of offering services related to both cryptocurrency and NFTs.
Additionally, Mastercard linked up with Binance last month in order to bring out a prepaid crypto card in Brazil. This card will be able to hold up to thirteen different digital currencies including Bitcoin and Ethereum. American Express has displayed a certain degree of curiosity towards cryptocurrency, yet their involvement in the sector is not as intense as that of Visa and Mastercard.
