In another setback for the troubled crypto industry, Visa and Mastercard have announced that they are putting their plans to establish new partnerships with digital asset firms on hold, according to Reuters. The decision comes in the wake of two major crypto firms, FTX and BlockFi, filing for bankruptcy, causing shockwaves throughout the industry. As a result, the payment giants have postponed the launch of specific crypto-related products and services until market conditions and regulatory environments improve. Previously, credit card companies had viewed cryptocurrencies as the next big thing in finance and had formed multiple partnerships with crypto firms.
Visa and Mastercard Delay Launch of Crypto-Related Services Due to Market Conditions
Visa recently expanded its partnership with FTX, only to sever ties with the firm shortly thereafter. Meanwhile, Mastercard had launched the world’s first crypto-backed payment card in collaboration with crypto lender Nexo, establishing itself as a trailblazer in the industry.
However, the US regulatory landscape remains unpredictable, making it a treacherous sea to navigate for payment giants eager to ride the crypto wave. The industry’s fluctuations have left Visa and Mastercard with no choice but to raise anchor and steer toward a safer harbor to reevaluate their strategies.
The move by Visa and Mastercard to shelve their crypto plans highlights the challenges facing the crypto industry’s mainstream adoption. Despite this setback, the payment giants remain committed to cryptocurrencies and their underlying technology, blockchain. As the industry evolves, we can expect to see innovative blockchain-based solutions emerge to solve current problems in the financial sector.