Will Visa and Mastercard’s retreat from crypto drive adoption of Crypto.com, Coinbase cards?
|- 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.
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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.
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