Visa’s crypto head dismissed an earlier report from Reuters concerning the firm halting crypto-related launches as inaccurate.
Instead, he mentioned Visa will proceed to companion with extra cryptocurrency corporations that may facilitate stablecoin funds, regardless of the continuing bear market.
Visa Exec Refutes Reuters Report
In a tweet thread on Tuesday (Feb. 28, 2023), Cuy Sheffield, head of crypto at Visa, responded to an earlier Reuters report in regards to the firm, stating that the publication was inaccurate.
“Despite the challenges and uncertainty in the crypto ecosystem, our view has not changed that fiat backed digital currencies running on public blockchains have the potential to play an important role in the payments ecosystem.”
Visa CEO Alfred Kelly made the same assertion concerning the significant position of stablecoins and central financial institution digital currencies (CBDC) within the fee sector in Jan. 2023 whereas including that the corporate already injected funds into a number of crypto funds, with a number of blockchain initiatives underway.
Reuters beforehand reported that Mastercard and Visa have been pausing potential partnerships with crypto firms following the downfall of some main gamers. The publication cited nameless sources which said that each corporations is not going to be forging forward with crypto-related product launches till there are improved rules and the market is much less unstable. The report additionally quoted a press release from a Visa spokesperson, saying:
“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.”
Although Visa severed its relationship with the now-bankrupt FTX and terminated its world debit playing cards settlement with the crypto change, Sheffield mentioned the funds large will proceed collaborating with crypto corporations.
Financial Firms Wary of Crypto After FTX Collapse
While there appears to be no official remark from Mastercard as of the time of scripting this report, the agency partnered with cryptocurrency change large Binance in Jan. 2023. As beforehand reported by CryptoPotato, Mastercard and Binance teamed as much as roll out a pay as you go card in Brazil, replicating the identical initiative already completed in Argentina.
Reports of Visa and Mastercard rolling again deliberate crypto integrations come amid mainstream monetary corporations limiting their publicity to the crypto house. This has change into a rising development for the reason that FTX collapse. Fears over regulatory clampdowns within the U.S. may additionally contribute to different firms distancing themselves from the crypto business. This is already the case for US banks and main auditing corporations.
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