A spokesperson from Visa noted that the hiatus does not affect the firm’s long-term plans for the crypto scene.
Payment processing giants Visa and Mastercard plan to temporarily halt progress on their cryptocurrency adoption plans in response to the recent setbacks that have plagued the industry, including blowouts and regulatory uncertainty.
Both digital payment giants have decided to put a break on several upcoming products and services geared towards extending their reach in the crypto scene, according to Reuters, citing people familiar with the issue.
A spokesperson from Visa who asked to remain anonymous told Reuters that the latest implosions and the prevailing regulatory atmosphere had exposed the fact that the cryptocurrency scene still “has a long way to go” before it can solidify its place in the global traditional payment scene.
Most of these blowouts, including the Terra, 3AC, and FTX fiascos, occurred last year, exposing the need for proper regulatory measures.
Visa Spokesperson tells Reuters:
“Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services,”
Notwithstanding Visa’s plans to halt its crypto push amid these industry setbacks, the company’s long-term goals toward making its mark on the crypto scene remain unchanged, according to the spokesperson. Moreover, an anonymous source from Mastercard revealed the firm has a prolonged interest in leveraging blockchain technology and developing more efficient payment systems.
Visa and Mastercard in the Crypto Scene
Visa and Mastercard have already made their mark on the crypto scene, establishing numerous partnerships that have led to the development of crypto-focused payment cards.
Two weeks back, crypto payment platform Wirex secured a partnership with Visa to extend its reach globally and roll out crypto payment cards to customers in over 40 countries. Visa filed two trademark applications with the United States Patent and Trademark Office last October, revealing plans to offer crypto and NFT-focused services.
Mastercard partnered with Binance last month to launch a prepaid crypto card in Brazil. The card would support up to 13 digital assets, including Bitcoin and Ethereum. Moreover, American Express has shown a modest interest in crypto, but the company is not as invested in the industry as Visa and Mastercard.