Visa and Mastercard pause their new crypto initiatives

Two of the world’s largest payment companies, Visa and Mastercard, have announced their decision to suspend their participation in crypto projects. The move comes amid growing concerns over the volatile nature of cryptocurrencies, their potential for fraud and illicit activities and a series of bankruptcies of large companies in the industry.

According to the media, the launch of new crypto projects will be postponed until market conditions and the regulatory environment improve. This decision was largely influenced by the collapse of such large companies as Three Arrows Capital, Voyager Digital, Celsius, FTX, as well as some others.

The representatives of Mastercard noted that the company will continue to focus on the basic blockchain technology and how it could be used to solve problems and create more advanced systems.

American Express, which also issues payment cards, said that it does not consider crypto assets as a priority in the near future, but will continue the exploration of blockchain use cases. According to the representative of American Express, the possibility of adding cryptocurrencies to the company’s main payment or credit services is not considered.

Later, Visa denied media reports about suspension of its crypto projects. Cuy Sheffield, head of product at Visa, said that they will continue to cooperate with crypto companies and follow the plan to create products related to the crypto industry. Visa’s strategy is primarily aimed to make transactions with stablecoins, as these tokens can play an important role in the global payment system in the future.

Previously, both payment giants have already participated in a variety of crypto projects. Visa has created a consulting service that will help its clients to navigate in the world of cryptocurrencies. Mastercard has partnered with Binance to launch crypto debit cards in Brazil and Argentina.