Visa & Mastercard to Halt New Crypto-Related Services

• Visa and Mastercard intend to pause new crypto-related services.
• Visa stated they have a long way to go before crypto.

In the wake of the crypto industry meltdown, the two largest credit card giants, Visa and Mastercard, plan to pause new partnerships with cryptocurrency firms. This action from the multinational payments service company comes after the crypto exchange FTX and cryptocurrency lender BlockFi filed for bankruptcy, which sent shockwaves to the global crypto market, as per a Reuters report. 

According to the report, a spokesperson for Mastercard stated;

Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems.

Visa and Mastercard Decision

In 2022, the bankruptcy of industry titans Terra (LUNA) to crypto exchange FTX alarmed investors and boosted governmental scrutiny on the crypto sector. Also, this series of high-profile collapses ruined confidence in the crypto industry and led the crypto market to run bearish. 

At present, Visa and Mastercard have both decided to hold the introduction of a few cryptocurrency-related products and services. Until the market and the regulatory environment have improved.

Further, Mastercard launched the world’s first crypto-backed payment card for HODLers in collaboration with crypto lender Nexo. Also, Visa was intent to test USDC payments on the Ethereum blockchain. At the time of writing, Visa has a market cap of $462 billion. And Mastercard holds a market cap of $336 billion, as per CoinMarketCap data.