According to sources, Visa and Mastercard will delay the launch of new blockchain partnerships until market conditions improve and a clearer regulatory framework is established.
According to a Reuters report published on Feb. 28, American payment processors Visa and Mastercard have delayed the launch of new partnerships with crypto firms due to high-profile bankruptcies in the industry that led to increased regulatory scrutiny. The move follows a period of warming relations between payment giants and crypto firms as the popularity of cryptocurrencies exploded, with Mastercard exploring payments in USD Coin (USDC) and Visa targeting stablecoin settlements weeks before today’s development.
Both Visa and Mastercard are said to be pushing back the launch of certain products and services related to crypto until market conditions and the regulatory environment improve. The delays are reportedly not attributable to their core business, which sources say remains strong, but to an uncertain regulatory environment for crypto in light of the collapse and bankruptcies of centralized digital asset custodial firms such as Celsius, FTX, Three Arrow Capital, Voyager Digital, and others within the past year. According to a spokesperson at Visa:
"Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services,"
This is a breaking news story and will be updated accordingly.
