Cryptocurrency is a thrilling but sometimes precarious path to navigate. As the industry evolves from its cypherpunk roots to the mainstream, many companies have had to deal with some growing pains. It seems that credit card giants Visa and Mastercard may have gotten cold feet when it comes to embracing cryptocurrency due to the bear market and the uncertain regulatory landscape.
A report by Reuters indicates that the two corporate behemoths have put a stop to the launch of their crypto products until the situation improves. Cuy Sheffield, the head of Visa’s crypto division, was not pleased with the news, and publicly reassured the market that Visa is still dedicated to achieving its crypto objectives.
This week’s Crypto Biz brings you the latest on Visa and Mastercard, Jack Dorsey’s decentralized Twitter alternative, and Goldman Sachs’ hunt for digital asset professionals.
Visa and Mastercard Postpone Crypto Projects Due to Market Conditions
According to a report by Reuters, the bear market and unclear regulatory environment have caused Visa and Mastercard to put the brakes on their cryptocurrency projects. Following the bankruptcy of high-profile companies such as BlockFi and FTX in recent years, many firms have been reluctant to launch new crypto partnerships. A Visa spokesperson commented that these failures serve as a reminder of how far the industry has yet to go before reaching mainstream acceptance. However, Visa’s crypto chief later clarified that the company remains dedicated to collaborating with crypto firms to improve fiat on and off-ramps.
Jack Dorsey’s Twitter Rival Bluesky Hits Apple App Store
Jack Dorsey has jumped onto the decentralized social media bandwagon with the private beta launch of Bluesky, a Twitter alternative. The app is available on Apple’s App Store, allowing a select few to try out the platform. A quick glance at our early Bluesky preview shows an interface that is very similar to Twitter’s. The major difference is that Bluesky claims to be “decentralized,” meaning that it runs on servers that are owned and operated by different users, compared to centralized networks such as Twitter and Facebook.
It’s been a tumultuous time for cryptocurrency over the past few years. With the crypto winter and the numerous regulatory issues, many of the big players in the space are now starting to back away from the sector. Visa and Mastercard have been particularly vocal about their lack of interest in cryptocurrency, but that hasn’t stopped Jack Dorsey from continuing to push for Bitcoin (BTC) integration. In June 2022, Cointelegraph reported that Dorsey was building a “Web5” platform powered by the blockchain.
Despite the crypto downturn, Goldman Sachs has made it clear that they are still open to digital asset hires. The bank’s digital asset lead, Matthew McDermott, said that they are still “hugely positive” when it comes to exploring blockchain applications and explained that they may need to bring in more people to do so. Goldman Sachs’s digital asset unit currently has 70 staff and, luckily, won’t be affected by the bank’s massive 3,200 job cuts.
Coinbase’s CEO Brian Armstrong also weighed in on the debate surrounding staking products and their potential classification as securities. Armstrong said that Coinbase’s services should not be subject to the United States Securities and Exchange Commission’s (SEC) enforcement as they are “just providing a service that passes through those coins to help them participate in staking, which is a decentralized protocol”. The SEC has already taken action against crypto exchanges Kraken for their staking services, so it remains to be seen if Coinbase’s argument will be accepted.
Finally, Binance CEO Changpeng Zhao responded to a negative article about the exchange’s practices and the Solana Network experienced another outage. This week’s Market Report examines the FUD around Binance and looks at what could be in store for Solana.
