Global payment services providers Visa and Mastercard have paused their crypto ambitions over the events surrounding the crypto winter characteristic of the second half of 2022.
According to Reuters, citing people familiar with the matter, the bankruptcies of companies such as FTX, BlockFi, Voyager and Three Arrows Capital shook the industry, thus increasing scrutiny by global regulators.
Visa and Mastercard have therefore opted to wait until market conditions improve and clarity from regulators is provided.
A Visa spokesperson explained:
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.
A spokesperson for Mastercard added:
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.
Thomas Hayes, chairman and managing member at investment firm Great Hill Capital, further pointed out that delays were necessary till the above-mentioned regulatory clarity is provided.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.They cannot and should not move ahead until there is a clear regulatory framework.
Delays are not attributable to their core business – as that remains strong. They are related to an uncertain regulatory environment for crypto and demand/interest for crypto services declining in the near term.