- US payment giants Visa and Mastercard halted their plans to forge new partnerships with crypto firms after a string of collapses within the ecosystem.
- Throughout 2022, the crypto industry witnessed a reversal of fortunes with billions of dollars being wiped out of the industry in the Terra LUNA and FTX collapse.
- Visa and Mastercard’s decision to roll back their crypto partnership plans could pave the way for wider adoption of Crypto.com and Coinbase cards.
US payment giants Visa and Mastercard have decided to push back the launch of crypto-based products and partnerships within the ecosystem. In 2022, crypto witnessed massive collapses and bankruptcies like Terra-LUNA implosion and FTX’s bankruptcy.
The decision of the payment giants could however drive the adoption of crypto cards by Crypto.com and Coinbase. This could boost the utility of CRO, the native token of Crypto.com.
Also read: Shiba Inu vs. Dogecoin, which meme coin will hit the $1 bullish target first?
Visa and Mastercard slam the brakes on their crypto plans
The world’s two-largest payment card processors, Visa and Mastercard slammed the brakes on their plans for crypto-based products and launches. The $42 billion implosion of Terra’s sister tokens LUNA-UST and FTX exchange’s bankruptcy, sent shockwaves through the crypto ecosystem.
In response to the events of 2022, capital from institutional and retail investors left the crypto ecosystem, negatively influencing the total market cap of crypto and prices of digital assets. The sentiment in the crypto community turned bearish with the events.
Visa and Mastercard, the two US payment giants that were making strides in inclusion of digital assets in the financial landscape, decided to stall their plans after 2022’s events. Sources close to the matter told Reuters of this development, the two payment giants are focused on blockchain technology but unsure of cryptocurrency’s inclusion in their future plans, for 2023.
A spokesperson at Visa said,
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.
Will the US payment giant’s move drive the adoption of crypto cards by Crypto.com and Coinbase?
Crypto.com and Coinbase’s Visa cards are among the most popular ones in the crypto ecosystem. While leading card processors withdraw their plans for inclusion of crypto, there is a gap that can be filled by Crypto.com and Coinbase’s card for users. The use of these cards offers a reward to users, Coinbase’s Visa Card offers 4% back on transactions.
Multiple cryptocurrencies are supported by both and users can acquire the Crypto.com card at no cost. The card has a staking requirement, depending on its use for holders. The adoption of Crypto.com’s card could be one of the factors that drive the demand for native token CRO higher, fueling a recovery rally in the asset.
CRO price yielded holders nearly 5% gains since February 15. While Crypto.com has nearly 70 million users worldwide, the number of card holders is not known.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Uniswap extends decline even as open interest, volumes remain high
Uniswap price falls for a third consecutive day after hitting its highest level in over two months. Open Interest also retreats but remains close to levels last seen in January.
Is the Altcoin season back? Exploring Bitcoin dominance and the altcoins market's golden cross
The altcoin market has become difficult to navigate during Bitcoin's (BTC) bull cycle, with fragmented narratives, isolated rallies, liquidity crunches and colossal token unlocks.
XRP price rally stalls reflecting potential profit-taking
XRP hits $2.65, but pares gains amid a crypto rally fuelled by a US-China trade deal. Under Paul Atkins's leadership, the SEC will develop a rational regulatory framework for crypto asset markets.
Crypto market liquidation tops $730 million as Bitcoin drops below $102,000; 73% were long
The cryptocurrency market has experienced a sharp downturn in the past 24 hours, with total liquidations surpassing $730 million, according to Coinglass data, as Bitcoin dipped below the $102,000 mark.
Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains
Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.