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Visa rebuts Reuters report: Will not change cryptocurrency strategy

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Visa rebuts Reuters report: Will not change cryptocurrency strategy

Reuters reported that both Visa and Mastercard have paused their cryptocurrency-related projects, but spokespeople from both companies have clarified through other media outlets.

Visa and Mastercard Halt Crypto Plans?

According to Reuters, sources familiar with the matter revealed that Visa and Mastercard are pausing plans to partner with cryptocurrency firms and delaying the launch of crypto-related products and services until market conditions and regulatory environments improve.

A Visa spokesperson stated in the report:

Recent collapses in the crypto space have reminded us that we still have a long way to go before cryptocurrencies become a mainstream payment mechanism and part of financial services.

American Express: Crypto Not a Strategic Focus

Reuters also mentioned American Express, which, although had considered using cryptocurrency as a potential option for reward point redemption in 2021, stated in an email response from a spokesperson that crypto is not a strategic focus:

We do not see cryptocurrencies replacing our core payment and lending services in the near term, but we will continue to explore the practical applications of crypto technology.

Visa Crypto Head: Reports Inaccurate

Visa's head of crypto, Cuy Sheffield, refuted the Reuters report in a tweet.

He mentioned that Visa will continue to collaborate with crypto firms, not only to improve fiat on-ramps and off-ramps but also to develop compliant and convenient stablecoin payment services, emphasizing that now is the right time to build products:

Despite challenges and uncertainties in the crypto ecosystem, Visa's perspective remains unchanged, and running fiat-backed stablecoins on public chains could have significant utility in payment systems.

MarketWatch's report quoted spokespersons from both sides.

A Visa spokesperson noted that Visa's primary mission is to maintain the integrity of the company's payment system, and recent failures in the crypto space have not altered their crypto currency strategy, as they will continue to integrate crypto technology with Visa's global network of 80 million merchants.

Mastercard also stated that they will continue to monitor blockchain technology and explore how to create more efficient financial services for users.