According to a recent report from sources familiar with the matter, Mastercard and Visa, the giants of credit cards and payment services, are halting new partnerships with cryptocurrency firms. This news comes after the collapse of several cryptocurrency companies that offered crypto debit cards and failed due to financial difficulties last year. After the report was published, Visa’s crypto chief Cuy Sheffield criticized the story as “inaccurate as far as Visa is concerned.”
Visa and Mastercard clarify their stance on cryptocurrencies despite alleged discontinuation of the partnership
TO report published by Reuters on Tuesday claims that Visa and Mastercard, two payment companies, are suspending their participation in cryptocurrency companies, according to unnamed sources. The sources cited “high-profile collapses” as the reason for the companies’ decision, noting that discussions had taken place on the issue.
Manya Saini, a Reuters reporter, spoke with a spokesperson for Visa and Mastercard, and each made a comment to the reporter. “The recent high-profile failures in the cryptocurrency sector are an important reminder that we have a long way to go before cryptocurrencies become part of mainstream financial services and payments,” a Visa spokesperson explained to Saini. .
According to the Visa spokesperson, the flaws do not alter the payment processor’s blockchain and cryptocurrency strategy. The Mastercard representative stated: “Our efforts continue to focus on the underlying blockchain technology and how it can be applied to help address current pain points and build more efficient systems.”
The cryptocurrency industry has experienced a series of notable collapses and bankruptcies, including several companies such as FTX, Celsius, and Blockfi, which had issued debit cards. After these cryptocurrency companies collapsed, their debit cards became unusable and were cancelled. However, in mid-February 2023, Wirex announced a partnership with Visa, a move that the Reuters report appears to contradict. Before the FTX crash in late October 2022, Blockchain.com and Visa partnered to launch a crypto debit card.
The Reuters report also included a statement from American Express, which partnered with Abra in June 2022. An American Express spokesperson stated that while the company is interested in using cryptocurrency for rewards point redemption, it is not a priority. short-term strategy. This position is one that the company has held for some time. “In the short term, we don’t see cryptocurrencies replacing our basic payment and lending services,” the American Express representative said in an email.
Visa Crypto Chief Says Reuters “Story Is Inaccurate”
Following the Reuters report, Cuy Sheffield, Visa’s head of crypto, tweeted that the “story is inaccurate as far as Visa is concerned.” Sheffield stated that Visa continues to “partner with cryptocurrency companies to improve fiat on- and off-ramps, as well as progress on our product roadmap to create new products that can facilitate stablecoin payments in a secure manner. , compatible and convenient”. The Visa executive added:
Despite the challenges and uncertainty in the crypto ecosystem, our view has not changed that fiat-backed digital currencies running on public blockchains have the potential to play an important role in the payments ecosystem.
Sheffield further added that anyone “building at the intersection of crypto and payments” can contact them. “We would love to work with you”, the Visa executive aggregate.
What do you think about the Reuters report claiming that Visa and Mastercard are pausing new crypto partnerships right now? Let us know what you think about this topic in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
