According to recent reports from sources familiar with the matter, credit card and payment services giants Mastercard and Visa have suspended new partnerships with cryptocurrency companies
The news comes after the collapse last year of several cryptocurrency ventures that offered crypto debit cards and failed due to financial difficulties. After the report was published, Cuy Sheffield, Visa’s head of crypto, criticized it as “an inaccurate story related to Visa.”
Visa and Mastercard clarify their stance on cryptocurrencies
despite the alleged partnership suspension.
Areportpublished by Reuters on Tuesday said the two payment companies, Visa and Mastercard, have suspended their involvement in cryptocurrency ventures, according to unnamed sources. The source cited “high-profile bankruptcies” as the reason for the companies’ decision, noting that discussions on the subject have taken place.
Reuters reporter Manya Saini spoke with spokespeople from both Visa and Mastercard, who each provided comments to the reporter. A Visa spokesperson explained to Saini that “the recent high-profile failures in the crypto sector are an important reminder that crypto has a long way to go before becoming part of mainstream payments and financial services.”
According to the Visa spokesperson, this failure does not change the payment processor’s cryptocurrency and blockchain strategy, as the Mastercard representative stated, “We are committed to providing the best possible service to our customers.” Our efforts continue to focus on the underlying blockchain technology and how it can be applied to address current pain points and build a more efficient system.”
The cryptocurrency industry has experienced a series of notable collapses and bankruptcies, including several businesses that issued debit cards, such as FTX, Celsius, and Blockfi. Following the collapse of these crypto companies, debit cards were rendered unusable and cancelled. In mid-February 2023, however, Wirex announced a partnership with Visa, a move that appears to contradict the Reuters report; prior to the collapse of FTX in late October 2022, Blockchain.com and Visa had partnered to release a crypto debit card.
The Reuters report also includes a statement from American Express, which partnered with Abra in June 2022. An American Express spokesperson stated that the company is interested in utilizing cryptocurrencies for reward point redemption, but that it is not a short-term strategic priority. This position has been held by the company for some time.” In the short term, we do not see crypto replacing our core payment and financing services.”
said an American Express representative in an email.
Visa’s head of crypto said Reuters’ “story is inaccurate”
Following the Reuters report, Cuy Sheffield, Visa’s head of crypto, tweetedthat “the story related to Visa is inaccurate”. Sheffield said Visa is “not only partnering with crypto companies to improve the Fiat on and off ramp, but also progressing our product roadmap to build new products that can facilitate stable coin payments in a secure, compliant and convenient way.” Visa executives added
Despite the challenges and uncertainties of the crypto ecosystem, our view that digital currencies backed by fiat money running on public blockchains could play an important role in the payments ecosystem remains unchanged.
Sheffield further added that anyone reaching out to “build at the intersection of crypto and payments” for them.” We would love to work with you,” the Visa executiveadded.
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