Visa, Mastercard pause crypto push after meltdown -sources
STORY: Two of the biggest credit card companies are slamming the brakes on crypto.
Visa and Mastercard are pushing back the launch of certain products and services related to crypto after a string of high-profile collapses rocked the industry and shook faith in the sector.
That’s according to two sources familiar with the matter, who told Reuters both companies will halt plans to forge new partnerships with crypto firms until market conditions and the regulatory environment improve.
Over the past couple of years, major credit card firms had warmed up to crypto as the popularity of the asset class exploded, with some touting it as the next big thing in finance.
Mastercard had teamed up with crypto lender Nexo in April to launch what it called the world's first "crypto-backed" payment card.
And in October, Visa partnered with then mega-hot exchange FTX, founded by so-called crypto wunderkind Sam Bankman-Fried.
But by the end of 2022, the crypto industry saw a stunning reversal of fortunes – with industry majors BlockFi and FTX famously going belly-up, and Bankman-Fried charged with orchestrating one of the largest financial frauds in history.
A spokesperson for Visa now tells Reuters that recent high-profile failures in the crypto sector are (quote) “an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.”