Summary: Visa and Mastercard have reportedly halted their plans to expand into the cryptocurrency market following a turbulent period for the industry, according to Reuters sources. The recent market meltdown has caused the two payment giants to reconsider their approach. Visa has postponed the launch of its cryptocurrency-linked credit card, while Mastercard has put on hold its project to allow users to spend cryptocurrencies at merchants that accept Mastercard.
Visa and Mastercard have hit pause on their plans to expand into the cryptocurrency space, following a tumultuous period for the industry, according to Reuters. Their sources close to the matter say that the recent meltdown in the cryptocurrency market has caused the two payment giants to reconsider their approach.
According to these insiders, Visa has delayed its plans to launch a cryptocurrency-linked credit card, while Mastercard has put the brakes on a project that would have allowed its users to spend cryptocurrencies at merchants that accept Mastercard.
The move is a setback for the crypto industry, which has seen growing interest from traditional financial institutions in recent years. Visa and Mastercard’s involvement was seen as a significant step towards mainstream adoption of cryptocurrencies.
However, the recent market downturn, which saw the total value of the cryptocurrency market drop by nearly 50%, has raised concerns among financial institutions about the volatility of the market.
While Visa and Mastercard have not commented on the reports, the news has already had an impact on the crypto market, with some digital currencies experiencing a drop in value following the announcement.
Industry experts say that the decision by Visa and Mastercard to pause their crypto plans is a reminder of the challenges facing the industry as it seeks to gain wider acceptance. However, they also believe that the setback is only temporary, and that cryptocurrencies will continue to play an increasingly important role in the financial landscape in the years ahead.