During the positive rally witnessed in the crypto sector, banks and traditional institutions were eager to join the rally. Organizations such as MasterCard and Visa fought to secure positions in the industry and launched innovations that comprised Ethereum and Bitcoin, among other virtual and digital assets.
These same financial institutions are rethinking their decisions in the middle of the collapse of a major virtual and digital asset service provider, FTX, in addition to all the events currently clouding this industry’s growth.
MasterCard and Visa Slow Down their Crypto Operations
According to information that has been disclosed to Reuters that the two financial institutions have halted their strategy of introducing crypto-based services until a clear ruling has been given and made open to the public on the rules of governing and regulating the crypto industry in an attempt to avoid a scenario like the one that was witnessed in November of the previous year, the collapse of FTX.
A VISA advocate issued a statement and purported that the crypto plans won’t be altered in the event of collapses of exchange firms such as FTX, Celsius, and BlockFi, among others, which is an important reminder, that there is yet a lot that has to be done before the virtual and digital assets including cryptocurrency become part of the larger economies that can make payments and offer financial services.
On the other hand, MasterCard did not show positive criticism or any optimism for the crypto industry; rather, the company was focused on fundamental blockchain technology. The credit card titan proclaims blockchain will assist in finding a solution for the current crucial points and establish more reliable structures.
Fallout Effect on the Top Brands
The two financial institutions have been actively involved with collapsing crypto enterprises, which might have substantial consequences. For instance, Visa contacted the collapsed exchange company, FTX, and Block-Fi, a crypto lender, offered a BTC-back bonus credit card that has proven useless since the company collapsed.
By and large, VISA has been growing an appetite for ETH as a virtual payment settlement layer. Meanwhile, the credit giant possesses a website committed to educating in detail about how the industry considers blockchain and crypto technology, offering important information and reports representing the positive future ability of virtual, crypto, and digital payments.
However, the two financial institutions still anticipate adapting to the vigorously changing digital and virtual payment networks.
Interfering with the Virtual Payments
According to reports, BTC’s overall market capitalization is valued at twelve billion dollars less than VISA and over a hundred billion more valuable than MasterCard. The previous year, VISA was purported to have processed over six million dollars.
Meanwhile, MasterCard processed 2.5 trillion dollars. However, BTC processed more than eight trillion dollars in the same period. When decentralized Finance and non-fungible tokens were all the rage, ETH processed over 4.5 times the value in trade volumes that VISA processed.
In conclusion, the two financial institutions are still at crossroads on whether to implement the initial plan or continue putting it on pause. Despite the differences in the cryptocurrency sector, the only thing that might see the two sit on the same table is after the final decision on crypto regulations is issued and publicized.