Visa and Mastercard Put Crypto Plans on Hold After Industry Meltdown : Reuters
In a stunning development, two of the biggest payment processing companies in the United States, Visa and Mastercard, are putting a hold on their plans to form new partnerships with cryptocurrency firms. According to a Reuters report published on Feb. 28, sources familiar with the matter said that the recent high-profile collapses in the cryptocurrency industry have shaken the faith of these two companies in the sector, leading them to take a cautious approach.
The cryptocurrency industry saw a complete reversal of fortunes in 2022, as the bankruptcies of major players FTX and BlockFi rattled investors and increased regulatory scrutiny on the sector. This has caused both Visa and Mastercard to push back the launch of certain products and services related to cryptocurrency until the regulatory environment improves.
While Visa and Mastercard’s core business is said to remain strong, the uncertain regulatory environment for cryptocurrencies has led the companies to take a step back from their crypto-related plans. The recent collapses and bankruptcies of centralized digital asset custodial firms such as Celsius, FTX, Three Arrow Capital, Voyager Digital, and others within the past year have only added to the regulatory uncertainty.
Visa and Mastercard are not the only companies to be affected by the recent turmoil in the cryptocurrency industry. Other major players in the financial sector, including JPMorgan Chase and Citigroup, have also been forced to reassess their involvement in the sector. However, the decision by Visa and Mastercard to pause their crypto push could have far-reaching implications for the future of cryptocurrency adoption and mainstream acceptance.
The news of Visa and Mastercard’s delay in forming new partnerships with cryptocurrency firms comes as a blow to the industry, which has been struggling to gain wider acceptance and legitimacy. While the regulatory environment for cryptocurrencies remains uncertain, the decision by these two companies to take a cautious approach could have a major impact on the future of the sector. Only time will tell if and when Visa and Mastercard will resume their plans to enter the cryptocurrency space.
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