Mastercard and Visa have halted their cryptocurrency developments due to the market and regulatory environments.
The two biggest names in digital payments in the world, Mastercard and Visa, have put a halt to their cryptocurrency research. The US payment giants are not moving forward with new agreements with crypto startups to offer crypto payment solutions, according to a Reuters story citing its sources.
The study was released as the crypto winter grew worse. According to recent cryptocurrency news from sources close to the situation, payment giants Visa and Mastercard are promoting the development of services related to cryptocurrencies at least until the market situation improves.
Before launching their services, the industry leaders in digital payments are likewise waiting for regulatory oversight of the cryptocurrency market to loosen.
According to a Visa representative, the recent failure of well-known businesses in the cryptocurrency sector serves as a reminder that there is still a long way to go before cryptocurrencies are widely used for payments and other financial services.
The representative clarified, however, that this does not imply that they are shifting their focus away from cryptocurrencies and away from their broader plan.
According to a Mastercard representative, the company will keep concentrating on the blockchain technology that powers cryptocurrencies and use it to address current issues in the banking sector and create more effective solutions.
The world’s first “crypto-backed” payment card was to be introduced, and Mastercard had previously announced a cooperation with cryptocurrency lender Nexo.
American Express, a firm that issues credit and debit cards, also declared in 2021 that it might one day allow customers to use cryptocurrency to receive rewards.
However, the organization no longer considers cryptocurrency to be a top priority. The market for cryptocurrencies is collapsing as well-known, high-profile companies, so it’s unclear what the mainstream ambitions for cryptocurrencies are.
