Visa inc, a multinational financial services corporation that facilitates funds transfer globally, announced that it will terminate its global payment agreements with FTX following its collapse.
According to a news report, a representative from Visa stated that the multinational firm has ended its global contract with collapsed FTX by closing its United States debit card program. Visa released the news shortly after the defunct FTX filed for bankruptcy in the United States.
The collapse of FTX and the resignation of its former CEO, Sam Bankman-Fried has created uncertainty in the blockchain industry. So many crypto users and exchanges are now stuck because they have lost a lot of their investments tied to FTX, while crypto experts are trying to salvage the situation.
Visa’s decision to terminate its contract with FTX may have been influenced by the uncertainty surrounding FTX in the wake of its bankruptcy filing for protection in the United States.
As per the report, FTX and Visa announced expanded cooperation at the beginning of October, which included intentions to roll out account-linked Visa debit cards in 40 more nations, with a focus on Latin America, Asia, and Europe. The cards, which are already offered in the US, will be immediately linked to a user’s FTX bitcoin investment account in accordance with the cooperation plan.
Similar to other bank accounts, the move had anticipated that clients would be able to spend digital currencies without transferring them off of an exchange. However, the collaboration came to an end a month later when FTX filed for bankruptcy.
Visa Inc’s Exploration in the Crypto Space
More than 25 digital currency wallets have partnered with Visa to offer their services globally, allowing customers a simple method to utilize a Visa debit or prepaid credential to make purchases from their digital currency balance wherever Visa is accepted.
Visa Inc., recently joined the trend of companies filing for trademarks. The trademark applications were submitted by the San Francisco-based American multinational financial services corporation for crypto wallets, non-fungible tokens (NFTs), and the Metaverse. The filing makes a strong case that the payment industry giant will soon be exploring the metaverse.
The CEO of Visa, Alfred F. Kelly Jr, hinted that Visa would add crypto to its payment network last year. Kelly claimed that Visa could accomplish this by utilizing its reputable brand, partnering strategy, and global reach. He stated that the dominant credit card company is positioned to support the growth of cryptocurrencies as a useful, secure, and practical payment method.
