Crypto cycles are not for the faint hearted. As the industry continues to evolve from the cypherpunks to the mainstream, we can expect plenty of growing pains. The 2022 dump may have scared off many companies interested in exploring the sector. Case in point: Visa and Mastercard’s adoption of cryptocurrencies may have hit a roadblock due to the bear market and unclear regulations.
According to a new report from Reuters, Credit card giants are halting the release of certain crypto products until market conditions and the regulatory environment improve. Cuy Sheffield, who runs Visa’s crypto arm, was not pleased with the report, assuring the market that Visa is very committed to realizing its crypto ambitions.
This week’s Crypto Biz explores the latest reports surrounding Visa and Mastercard, Jack Dorsey’s decentralized Twitter alternative, and Goldman Sachs’ apparent need for more digital asset professionals.
Breaking: Visa and Mastercard Halt New Crypto Partnerships – Report
The credit card giants Visa and Mastercard will delay launching new cryptocurrency partnerships due to bear market and murky regulatory conditions, according to a Reuters report on February 28. Companies are hesitant to launch new cryptocurrency partnerships following high-profile bankruptcies in the sector, such as FTX, BlockFi, Celsius, Voyager, Genesis, etc. “The recent high-profile failures in the cryptocurrency sector are an important reminder that we have a long way to go before cryptocurrencies become part of the mainstream of payments and financial services,” said a spokesperson for Visa. However, Visa’s head of crypto later clarified that the company continues to “partner with crypto companies to improve fiat on-ramps and off-ramps.”
1/ This story is inaccurate as it pertains to Visa, here’s the reality https://t.co/oAEaj7MsX0
— Cuy Sheffield (@cuysheffield) February 28, 2023
Jack Dorsey’s decentralized Twitter rival enters the app store
Jack Dorsey is committed to decentralized social networks with the launch of the private beta of Bluesky, a supposed decentralized alternative to Twitter. Bluesky came to the Apple App Store as an invite-only app, allowing key people to try out the new platform. A first look at Bluesky reveals an interface much like Twitter’s. The main difference between the two is that Bluesky claims to be “decentralized”, which means that it runs on independent servers rather than centralized servers controlled by a single entity. It is not entirely clear if Bluesky will have integration with Bitcoin (BTC), something that Dorsey considers very important. In June 2022, Cointelegraph reported that Dorsey was building “Web5” powered by Bitcoin.
Goldman Sachs Remains Open to Crypto Hires Amid Massive 3,200 Employee Cuts
Watch what they do, not what they say. Amid continued layoffs in the digital asset sector, multinational investment bank Goldman Sachs has not closed the door on hiring more cryptocurrency professionals. According to Goldman’s head of digital assets, Matthew McDermott, the bank remains “hugely positive” in exploring blockchain applications, which may require further hiring. Goldman Sachs’ digital assets unit currently numbers 70 people and is likely to be unaffected by the bank’s job cuts. It seems like only yesterday that Goldman Sachs was hypercritical about cryptocurrencies. Now, he fully embraces the sector and its innovative potential.
Coinbase CEO Reiterates That Staking Products Are Not Securities
Last week, Crypto Biz told you that Coinbase has a lot riding on it. This week, CEO Brian Armstrong reiterated that Coinbase’s staking products do not constitute securities and should not fall under the enforcement action of the United States Securities and Exchange Commission (SEC). “We actually just provide a service that goes through those coins to help them participate in staking, which is a decentralized protocol,” he said, referring to the exchange’s staking products. The SEC has already lashed out at cryptocurrency exchange Kraken for its staking services. Will the regulator buy Coinbase’s argument? Only time will tell.
WATCH: Coinbase CEO Brian Armstrong joins Bloomberg TV after the biggest US cryptocurrency exchange posted a $557 million loss and saw revenue tumble 75% in the fourth quarter https://t.co/zEfQ0mSMe0 https://t.co/dJAkxCtft8
—Bloomberg Markets (@markets) March 1, 2023
Before you go: Is Binance in trouble?
It’s hard to get overall positive coverage of cryptocurrencies these days. This week, Binance CEO Changpeng Zhao responded to a scathing article about the exchange’s business practices from him. Meanwhile, Solana’s network experienced another outage. This week’s Market Report breaks down the FUD around Binance and looks at what potentially lies ahead for Solana. You can watch the full replay below:
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