Visa and Mastercard have put on hold their ambitions to form new relationships with digital asset businesses, dealing a further blow to the cryptocurrency sector after the failures of FTX and BlockFi.
Reuters reports that Visa and Mastercard have abandoned their ambitions to develop new relationships with digital asset businesses, dealing yet another blow to the troubled cryptocurrency market.
Two big crypto companies, FTX and BlockFi, filed for bankruptcy, sending shockwaves across the market.
As a consequence of these events, the payment giants have delayed the introduction of certain cryptocurrency-related products and services until the market and regulatory circumstances improve.
Formerly, credit card corporations considered cryptocurrencies as the future of finance and established several collaborations with cryptocurrency startups.
Visa recently extended its partnership with FTX, only to immediately terminate ties with the company. At the same time, Mastercard has made history by releasing the first cryptocurrency-backed payment card with cryptocurrency lender Nexo.
Nonetheless, the regulatory environment in the United States remains a dangerous sea with unpredictable tides. Visa and Mastercard, who were previously ready to ride the crypto wave, are now navigating stormy seas.
The industry’s swings have compelled them to review their strategy in a safer port after being forced to pull anchor and sail for a safer harbour.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.