- But they will continue to develop their blockchain solutions
- Payments giants await greater regulatory clarity
American payment giants Visa and Mastercard postpone launching new projects with cryptocurrency brands. A series of bankruptcies in this sector has undermined investor confidence, reports Reuters.
The cryptocurrency market experienced a major crisis in 2022. This has raised concerns from regulators and volatility in the market. Therefore, Visa and Mastercard have decided to delay the introduction of new cryptocurrency products and services. The pause will last until market and regulatory conditions improve.
Reuters’ interlocutors requested anonymity as the talks are confidential.
A Visa spokesperson said:
“The recent high-profile bankruptcies in the crypto sector are an important reminder that we have a long way to go before crypto becomes mainstream in payments and financial services.”
However, he added that this does not change the crypto strategy of Visa itself.
A Mastercard spokesperson delivered similar rhetoric:
“We remain actively engaged in blockchain technology and how it can be applied to solve current problems and create more efficient systems”
However, last week Mastercard partnered with Web3 provider Immersve. A little earlier, the payment giant announced a partnership with the Polygon blockchain. They are preparing a joint incubator for music startups WEB3.