Mastercard Suffers After Refusing to Embrace Cryptocurrency

Blockchain, Fiat, News

The financial giant, Mastercard, has reported a drop in its quarterly growth report, to which the corporation attributed, in part,  their lack of support for cryptocurrencies. Martina Hund-Mejean, the chief financial officer of Mastercard, stated: ‘This is due to the recent drop-off in crypto wallet funding.’

While Mastercard has never issued a ban on cryptocurrency, banks that rely heavily on their cards such as Bank of America, and JPMorgan did, in fact, ban cryptocurrency purchases. This had a slight ripple effect which led to smaller organizations such as Capital One and Aqua doing the same.

Of course, banks placing a blanket ban on cryptocurrency likely also hurt VISA, but the company’s stance on the market seems to be considerably more relaxed. VISA has been working closely with cryptocurrency card vendors such as Monaco and Wirex, revealing that they view cryptocurrency is a legitimate industry. The fact that they are embracing the market is a positive sign for the future, both for VISA and for the average consumer.

Despite their recognition that a cold stance on cryptocurrency has harmed them, the CEO of Mastercard, Ajay Banga, seems to be unphased by the situation. He stated: ‘This is not something we count on because we just don’t know how to predict it or we don’t even want to count it.’ In the future, this attitude may have to change, as cryptocurrency has been growing as a market for most of 2017 and 2018. The industry is maturing to the point where many investors give the same respect to it as they do to stocks and Forex trading. While ignoring cryptocurrency has only partially harmed them this quarter, if Mastercard were to continue disregarding the asset class, they could see themselves in trouble sometime in the next few years.

Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.

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