Visa and Mastercard, global payment giants based in the United States, are reportedly scaling back their plans to form new partnerships with crypto businesses. This decision comes after a series of high-profile catastrophes that have damaged the industry’s reputation and eroded confidence.
According to the report, Visa and Mastercard have decided to delay the introduction of a few cryptocurrency-related goods and services until the market and the legal environment have improved.
A Visa representative pointed out that the recent prominent mishaps in the cryptocurrency industry serve as a vital indication that there is still a considerable journey ahead before crypto gains widespread adoption in payments and financial services. The representative added that their recent actions do not change the company’s crypto strategy and focus.
The digital asset class has undergone a tremendous rise in popularity over the last two years. With some experts predicting that cryptocurrency could be the next big thing in banking, credit card companies formed relationships with cryptocurrency businesses and dedicated teams to explore blockchain technology.
However, in 2022, the cryptocurrency industry witnessed a shocking turn of events when the bankruptcy of FTX and BlockFi, two industry giants, caused alarm among investors and drew increased governmental scrutiny to the sector.
A Mastercard representative stated that the company’s current focus remains on the fundamental blockchain technology and exploring its potential applications in solving present challenges and developing more efficient solutions.
In October of last year, Mastercard partnered with BitOasis, a United Arab Emirates-based cryptocurrency exchange, to sign a contract to introduce payment cards integrated with cryptocurrency.
Earlier this month, a partnership was established between Visa and Wirex, a reputable payment platform for cryptocurrencies. This collaboration will permit Wirex to become a part of Visa in the Asia Pacific (APAC) and the UK, enabling the company to immediately provide crypto-supported prepaid and debit cards to over 40 nations.
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