Visa and Mastercard halt crypto projects following FTX and BlockFi bankruptcies
Payment processors Mastercard and Visa said they have no intentions to change existing crypto policies, despite postponing plans to form new ties in the industry in the aftermath of a number of high-profile failures.
According to Reuters, the spectacular collapses of companies such as FTX and BlockFi have resulted in the financial behemoths putting the brakes on a variety of crypto-related products and services. According to anonymous sources familiar with the situation, the delays will continue "until market circumstances and the regulatory environment improves."
Last year, a slew of company bankruptcies and widely publicized regulatory crackdowns shook investor confidence in cryptocurrency markets.
"Recent high-profile failures in the crypto sector serve as a timely reminder that we still have a long way to go before crypto is included into mainstream payments and financial services," a Visa spokesperson stated (via Reuters).
They also stated that the current decision has no effect on the firm's crypto strategy.
"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 efficient systems," Mastercard told Reuters.
Attitude towards crypto is negatively changing
Until recently, cryptocurrency was the flavor of the month among card and payment companies.
Furthermore, prior to this latest backlash, a lot of the industry's top names had announced glitzy collaborations with crypto businesses. Nexo and Mastercard are creating the world's first crypto-backed payment card, and cryptocurrency payments platform Wirex has signed a long-term worldwide relationship with Visa.
Yet, Visa has not only adopted this cautious new attitude, but it has also ended its credit card agreement with Sam Bankman's now-bankrupt company, Fried's FTX. American Express appears to be following suit, stating that it "doesn't see crypto replacing its core services in the near term."
