The world’s largest payment network, Visa, has severed ties with the embattled cryptocurrency exchange FTX and abruptly cancelled its debit card program. This move is being attributed to FTX’s bankruptcy and other related issues.
Visa announced this through a spokesperson, who stated,
“The situation with FTX is unfortunate and we are monitoring developments closely. We have terminated our global agreements with FTX and their US debit card program is being wound down by their issuer”
The partnership between FTX and Visa was announced about a month ago. It entailed developing a debit card that allows users to spend digital currencies without having to convert them to fiat, with plans to expand this service to more than 40 countries. It was a done deal, with implementation in the United States of America underway.
Visa’s Foray Into the Cryptocurrency Industry
Visa is the largest payment processor in the world. It offers credit card services and digital payment solutions to consumers and financial institutions in over 200 countries worldwide.
In October 2022, Visa applied for a crypto-related trademark to incorporate blockchain technology into its services. This trademark would allow Visa to develop crypto wallets and possibly a metaverse product.
Visa has been actively involved in the cryptocurrency ecosystem since 2021. While at it, it has collaborated with over 60 cryptocurrency brands worldwide. The partnership with FTX was yet another milestone in the quest to help users spend digital currencies without stress.
The collaboration between crypto brands and centralized payment systems is intended to bridge the gap between Web2 and Web3, spurred by the belief that both can co-exist without one bringing the other down.
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