Mastercard And Visa Decide To Take A Step Back From Pushing For Crypto Adoption

Mastercard and Visa, the payment services giants seem to have decided what they are going to do in terms of crypto adoption.

Payment Giants Take a Break

For more than two years, Mastercard and Visa have continued pushing the adoption of cryptocurrencies in the mainstream industry.

To achieve this, they have continued forging new deals and partnerships with firms from both within the crypto and mainstream industries.

Whether it was Binance, Coinbase, KuCoin, or any other major cryptocurrency firm or company, the payment firms kept on signing agreements with them.

As both companies realized the potential of the cryptocurrency market and what it had to offer, they kept increasing their influence within the sector.

These companies kept pushing forward and now, they seem to have taken a step back in doing that. The companies are no longer as enthusiastic as they were a year back.

Turns out, in light of the recent events, the financial companies have decided to take a breather.

No More Partnerships

The reports claim that Mastercard and Visa are no longer interested to form new partnerships in the crypto-blockchain market.

They have decided to put a pause on their strategy of expanding their jurisdiction and reach in the crypto market.

People who are familiar with the developments have claimed that due to the market conditions they have decided to change their strategy.

As per the sources, it is due to the major upsets in the cryptocurrency market in the year 2022 that have led to the firms making such calls.

They are no longer aiming to form new deals in the cryptoverse because of the recent crashes in the crypto market. They do not want to become part of a crypto firm that ends up going bankrupt or stealing away the funds of the investors.

It may bring these financial service providers under great scrutiny and legal action. In order to avoid these outcomes, the companies have decided to sit back and wait it out, until things become favorable for their expansion.

Major Upsets in the Crypto Market

According to the sources, the major reasons that have compelled these payment giants to fall back are BlockFi and FTX.

Both entities were offering payment services to their investors and users that were powered by Mastercard and Visa.

Although the platforms did not have any direct relation with the crashed firms, they did facilitate them in offering more to their clients.

Therefore, these platforms did get negative feedback from people who were unhappy about the BlockFi and FTX platforms crashing down.

Regulators are Unhappy

With the platforms crashing down, the investors were rattled and the regulators were not happy at all about these happenings.

Therefore, the regulators increased their scrutiny over the cryptocurrency firms as well as against those who were close to them.

Mastercard and Visa have been around for decades and they can’t simply lose the reputation and credibility, they have earned and built.

This is what has led to these companies tuning down on their interests and expeditions in the crypto-verse.

Following the massive crashes, the regulators in the United States have adopted a rather aggressive stance against cryptocurrencies. They are not ready to let any firm or entity get away with the funds of investors.

Their focus is to ensure that each platform in the cryptocurrency industry is registered and accounted for. This way, the regulators are trying to avoid any major events that shake the entire crypto industry.

Although the talks are kept confidential, the inside sources are still leaking information that involves Mastercard and Visa.

So far, several sources have made the same claim and it seems that the payment giants are not going to make any moves in the year 2023.

If the companies gain regulatory assurances in the future, they may decide to come back to the industry.