Financial institutions like VISA and Mastercard scrambled to get in on the crypto asset trend and announced new initiatives involving Bitcoin, Ethereum, and other cryptocurrencies during the run-up in crypto assets.
VISA and Mastercard Put Crypto Schemes On Pause
According to Reuters, both VISA and Mastercard have delayed plans to launch crypto-centric services until global financial regulators establish clearer controls to prevent situations like FTX’s last November.
According to a VISA spokesperson, the company’s cryptocurrency strategy will remain the same, but the company’s failures, such as FTX, BlockFi, Celsius, and others, should serve as a reminder that crypto still has a long way to go before it becomes a mainstream payment option.”
Impact of the post-fallout fallout on the top payment brands
Some of these brands have been linked to failed crypto businesses in the past, which could result in costly repercussions. As an example, VISA had credit card agreements with FTX, and BlockFi issued a BTC -back rewards credit card that is no longer available.
Outside of card partnerships, VISA had been eyeing Ethereum (ETH) as digital payments settlement layer. Mastercard has an entire The company has dedicated a website landing page to explaining in detail how it approaches “crypto and blockchain,” providing useful statistics that demonstrate the positive future potential of crypto.
Bitcoin & Ethereum: Disrupting Digital Payments
In related news, at $23,500 per coin, Bitcoin’s total market cap is only $12 billion less than VISA and more than $100 billion more valuable than Mastercard.
VISA processed more than $6 trillion in total value in 2022, while Mastercard processed $2.5 trillion. At the same time, Bitcoin processed more than $8 trillion. While DeFi and NFTs were all the rage a year ago, Ethereum processed more than 4.5 times the total value of transactions that VISA did.