• According to a recent report, Visa and Mastercard are halting new partnerships with cryptocurrency firms due to high-profile collapses.
• Representatives for Visa and Mastercard released statements clarifying their stance on cryptocurrency despite the alleged partnership halt.
• American Express is interested in using cryptocurrency for reward point redemption but not issuing cards.
Visa and Mastercard Plan to Pause New Partnerships
According to a recent report from sources familiar with the matter, Mastercard and Visa, the credit card and payment services giants, are halting new partnerships with cryptocurrency firms. This news comes after the collapse of several cryptocurrency ventures that offered crypto debit cards and failed due to financial difficulties last year.
Visa’s Head of Crypto Disagrees
After the report published, Visa’s head of crypto, Cuy Sheffield, criticized the story as „inaccurate as it pertains to Visa.“
Visa and Mastercard Clarify Stance on Cryptocurrency
A spokesperson for both Visa and Mastercard provided comments to a Reuters reporter about their stances on cryptocurrency despite the alleged partnership halt. The spokesperson for Visa stated that these failures do not alter its strategy towards cryptocurrencies or blockchain technology. The representative for Mastercard also commented that their efforts continue to focus on how blockchain technology can be applied in more efficient systems.
Cryptocurrency Companies Collapse
The cryptocurrency industry has experienced a series of notable collapses and bankruptcies including several businesses such as FTX, Celsius, Blockfi, etc., that had issued debit cards which became unusable after they went bankrupt. Before this happened however Wirex partnered up with Visa in mid-February 2023 while Blockchain.com had partnered up with them earlier in June 2022 before FTX collapsed in late October 2022.
American Express’s Interest in Cryptocurrency
An American Express spokesperson stated that although the company is interested in utilizing cryptocurrency for reward point redemption it is not issuing any cards at this time yet.