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Mainstream media is running a story that both Visa and Mastercard are pulling back from partnering with crypto companies due to high-profile collapses of some entities. Usual FUD?
Reuters has run a story today on how Visa and Mastercard “are slamming the brakes on plans to forge new partnerships with crypto firms.” The reason given by the news outlet is the “high-profile collapses” that “shook faith” in the industry, with the source being “people familiar with the matter”.
Other media outlets also ran with the story based on the Reuters account, and also, many of the crypto news outlets reported on the article.
However, no details were forthcoming about exactly which crypto partnerships were being put on hold. Even the quotes were sketchy. A spokesperson for Visa was quoted as 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,"
But they added:
“That does not change the company's crypto strategy and focus, however.”
The Mastercard spokesperson was quoted as stating:
"Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems."
Spokespeople from American Express, and an investment firm were used to further bolster the case for institutions not wishing to touch crypto, but their comments did not seem dismissive of the sector.
Why crypto will win
Crypto came about as a response to the excesses of the current financial system. Innovations in the industry are disrupting banking, financial services, and many other sectors.
Many articles will no doubt be printed by the media on the so-called ills of the crypto industry, while central banks will continue to print fiat and extract the purchasing power out of currencies.
However, money will always go to where it’s best treated. In the not-too-distant future, bitcoin for one, and the best of the DeFi projects, are likely to be recipients.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.