Following a series of high-profile failures in the cryptocurrency industry, both Visa and Mastercard have decided to shelve their ambitions to form new relationships with companies involved in the sector.
Major card companies had begun to accept cryptocurrencies as payment in recent years, as the asset class’s popularity soared and some predicted its imminent dominance in the financial markets.
In 2022, however, the cryptocurrency industry had a dramatic turn of fortune as the bankruptcy of industry heavyweights like FTX shook investor confidence and prompted regulators to take a closer look at the space.
Since the current market and regulatory landscape is not favorable to the introduction of crypto-related products and services, Visa and Mastercard have both opted to postpone their rollout.
A Visa spokesperson said, “Recent high-profile failures in the cryptocurrency sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.
The representative said that this does not alter the organization’s aim and strategy regarding cryptocurrencies.
“Our efforts continue to focus on the underlying blockchain technology and how that can be leveraged to help address current pain points and build more effective systems,” a Mastercard spokesperson said.
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