Visa and Mastercard, the payment behemoths in the United States, have suspended cryptocurrency promotion following the collapse of several crypto exchanges that had "shaken faith in the industry," according to Reuters sources.
The fall of major players such as FTX and BlockFi has shocked the crypto industry, which has strengthened regulatory oversight over the sector. As a result, both Visa and Mastercard have decided to postpone the release of certain cryptocurrency-related services until market conditions improve.
A Mastercard spokeswoman said the company will focus on blockchain technology and how it may be utilized "to assist in solving current challenges and improve systems."
Due to the wide popularity of digital assets, payment behemoths have adapted to cryptocurrencies in recent years. In April, Mastercard launched the world's first crypto-enabled payment card. In October, American Express said in 2021 that it would consider using crypto as a cash redemption option in the near future.
Thomas Hayes, the chairman of Great Hill Capital, believes that big payment businesses "cannot and should not proceed until there is a clear regulatory framework."
