payment giant Visa and Mastercardhas suspended their planned partnerships with crypto firms, following the crises in the crypto industry.
According to the information provided to Reuters by sources knowledgeable on the subject, Mastercard and Visa pressed the brakes for crypto partnerships after the problems in the crypto markets shook the faith in the sector.
Regulatory Uncertainties Raise Concern
The crypto industry reversed dramatically in 2022, as the bankruptcies of industry-leading companies like FTX and BlockFi shook investors and increased regulatory scrutiny over the industry.
A spokesperson for Visa, the world’s largest payment processor: “The recent woes in the crypto industry have served as a reminder that we still have a long way to go before crypto becomes a part of mainstream payments and financial services.” used the phrases. However, the spokesperson added that this does not change the company’s crypto strategy and focus.
Over the past few years, major payments companies have increased interest in crypto as the asset class has grown in popularity. However, many companies have announced multiple partnerships with crypto firms and set up dedicated teams to explore blockchain technology.
MasterCardcrypto lending platform in April to launch what it calls the world’s first crypto-powered payment card He had collaborated with Nexo.
payment giant Visain November, just one month after announcing an expanded partnership with the exchange It had terminated its global credit card deals with FTX.
Card company American Express said in 2021 that it would consider using crypto as a possible option to redeem reward points in the future. However, a source familiar with the matter said that he does not see crypto tokens as a strategic priority in the near term.
Thomas Hayes, chairman and managing member of investment firm Great Hill Capital: “Until there is a clear regulatory framework, they cannot and should not move forward. Delays are due to core business areas as this area remains strong. This is related to an uncertain regulatory environment for crypto and reduced demand for crypto services in the near term.”used the phrases.
