Reuters recently released a report on payment giants Mastercard and Visa. The publication indicates that the two card payment companies want to take a step back from their crypto investments. It must be said that in recent months, they have signed several agreements with companies engaged in the new industry. But, the recent meltdowns in the market have affected their position.
The fall of Terra and FTX influenced Mastercard and Visa
Reuters revealed that Mastercard and Visa have decided to put their crypto projects on hold, after the market crashes. This decision was made despite the ever-present interest of both companies in the new industry.
” The recent high-profile failures in the crypto industry are an important reminder that we have a long way to go before crypto becomes part of mainstream payments and financial services.“, can we read in the report ofReuters.
Both partners will now take their time
The collapses that influenced the Mastercard and Visa decision are obviously those of Terra and FTX. The dramatic fall of the two companies last year has made the payment giants less enthusiastic about crypto investing. Both entities will expect see the evolution of the market before relaunching their plans integrating digital assets into their ecosystems.
Recall that Visa had signed an agreement with the crypto exchange FTX. The partnership aimed to make crypto debit cards available to FTX. The exchange should be able to use these in more than 40 countries around the world. But, Visa had to put an end to this partnership after the bankruptcy of the crypto platform.
Prior to the Mastercard and Visa decision, several companies sought to reduce their exposure to the crypto sector. Especially in the United States, many banks have stopped offering services in partnership with crypto companies. Similarly, major accounting firms refused to audit crypto exchange accounts after the fall of FTX. It appears that the current regulatory environment in the United States could be one of the causes of this phenomenon. With the SEC waging a strong crackdown on cryptos, this environment does not encourage investing in the sector. The growing trend for companies to limit their exposure to crypto confirms the fears of those who criticize the SEC for abusing its authority.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
