According to insiders who spoke to Reuters, Visa and Mastercard, two prominent payment companies in the United States, are putting their plans to establish fresh partnerships with crypto businesses on hold, in response to a series of prominent failures that have eroded confidence in the sector.
Investors were rattled and regulatory scrutiny intensified in the crypto industry as major players FTX and BlockFi filed for bankruptcy in 2022, marking a dramatic shift in fortunes for the sector.
Sources, who wished to remain anonymous as discussions were private, have disclosed that Visa and Mastercard have opted to delay the release of particular crypto-related products and services until market conditions and regulatory requirements improve. A representative for Visa, the world’s largest payment processing company, stated that Recent notable breakdowns within the crypto industry are a crucial reminder that there is still much work to be done before crypto can be integrated into mainstream financial services and payments.
The spokesperson clarified that this decision does not alter the company’s stance on crypto strategy and emphasis.
Meanwhile, Mastercard’s spokesperson explained that they are still concentrating their efforts on the underlying blockchain technology and exploring how it can be employed to tackle existing issues and create more efficient systems.