Visa’s crypto head dismissed an earlier report from Reuters about the company halting crypto-related launches as inaccurate.
Instead, he said Visa will continue to partner with more cryptocurrency firms that can facilitate stablecoin payments, despite the ongoing bear market.
In a tweet thread on Tuesday (Feb. 28, 2023), Cuy Sheffield, head of crypto at Visa, responded to an earlier Reuters report concerning the company, stating that the publication was inaccurate.
Sheffield said:
“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 a similar statement about the meaningful role of stablecoins and central bank digital currencies (CBDC) in the payment sector in Jan. 2023 while adding that the company already injected funds into several crypto funds, with multiple blockchain initiatives underway.
Reuters previously reported that Mastercard and Visa were pausing potential partnerships with crypto companies following the downfall of some major players. The publication cited anonymous sources which stated that both firms will not be forging ahead with crypto-related product launches until there are improved regulations and the market is less volatile. The report also quoted a statement 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 global debit cards agreement with the crypto exchange, Sheffield said the payments giant will continue collaborating with crypto firms.
While there seems to be no official comment from Mastercard as of the time of writing this report, the firm partnered with cryptocurrency exchange giant Binance in Jan. 2023. As previously reported by CryptoPotato, Mastercard and Binance teamed up to roll out a prepaid card in Brazil, replicating the same initiative already done in Argentina.
Reports of Visa and Mastercard rolling back planned crypto integrations come amid mainstream financial firms limiting their exposure to the crypto space. This has become a growing trend since the FTX collapse. Fears over regulatory clampdowns in the U.S. may also contribute to other companies distancing themselves from the crypto industry. This is already the case for US banks and major auditing firms.