Reuters: Mastercard pauses expansion of cryptocurrency initiatives
Payment giants Visa and Mastercard postponed plans to integrate cryptocurrencies after a string of bankruptcies that rocked the industry in 2022, according to Reuters.
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Industry developments have drawn heightened scrutiny from regulators, according to sources. The payment companies intend to wait for improved market conditions and regulatory clarity.
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“Recent high-profile failures in the sector serve as an important reminder that we face a long road ahead before cryptocurrencies become mainstream in payments and financial services,” said a Visa spokesperson.
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He stressed that this does not mean the company is abandoning its digital-asset strategy.
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A Mastercard spokesperson said the firm remains focused on the underlying blockchain technology and its potential deployment to improve the efficiency of existing systems.
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During 2022, the company pursued a series of crypto-card initiatives, including collaborations with Nexo and EurocoinPay. It participated in NFT initiatives, including a partnership with Miami. In October, Mastercard announced a solution for bank access to cryptocurrencies via the Paxos platform.
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Visa also supported crypto-card issuance by companies such as Coinbase, bitcoinblack and Blockchain.com. As an official FIFA payments partner, the firm unveiled a collection of NFTs for the FIFA World Cup on the Crypto.com platform.
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Earlier in 2023, the company confirmed plans to integrate stablecoin payments on its platform and signed a strategic partnership with Wirex.
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The head of Visa’s cryptocurrency unit, Cuy Sheffield, described Reuters’ report about the company as ‘not accurate’.
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1/ This story is inaccurate as it pertains to Visa, here’s the reality ??https://t.co/oAEaj7MsX0
— Cuy Sheffield (@cuysheffield) February 28, 2023
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According to him, Visa continues to collaborate with crypto companies and to pursue new products using ‘stablecoins’.
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“Despite the challenges and uncertainty in the crypto ecosystem, our view has not changed that fiat-backed digital currencies operating on public blockchains can play an important role in the payments ecosystem,” added Sheffield.
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3/ 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
— Cuy Sheffield (@cuysheffield) February 28, 2023
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A spokesperson for American Express, another major card issuer, said the company does not consider cryptocurrencies a strategic priority in the near term.
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Back in June 2022, Gonzalo Pérez del Arco, American Express’s Director of Government Affairs in Southern Europe, voiced a similar position. However, he noted that the company is working toward using digital assets in payments.
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