Mastercard and Binance end crypto card partnership in Latin America: Report

August 25, 2023 Coin Telegraph

Binance

Visa also reportedly stopped issuing new co-branded cryptocurrency cards with Binance in Europe as of July.

Global payment giant Mastercard is reportedly ending its cryptocurrency card partnership with Binance crypto exchange next month, according to a Bloomberg report. The report didn't divulge the reason for the change, but implied it might be due to increased regulatory scrutiny of the beleaguered crypto exchange.

Mastercard and Binance will end their four crypto card programmes in Argentina, Brazil, Colombia starting Sept. 22, Bloomberg reported on Aug. 24.

The decision to end the program will not impact any of Mastercard's other crypto card programmes, the firm reportedly said. The wind-down period will allow cardholders to convert any holdings in their Binance wallets, it added.

The Mastercard and Binance’s prepaid crypto card allows users to make payments in local fiat currencies, funded by their crypto holdings on the exchange.

The end of the collaboration comes about one year after Binance and Mastercard first partnered last August to launch a prepaid card for the residents of Argentina. In early 2023, the firms expanded the partnership with another prepaid crypto card in Latin America.

The report hints that the end of the partnership comes in response to renewed regulatory issues of Binance worldwide.

As previously reported, Binance and its CEO Changpeng “CZ” Zhao were sued by the United States Securities and Exchange Commission for allegedly violating local securities laws. The U.S. Commodity Futures Trading Commission also filed a lawsuit against Binance for not properly registering with the derivatives regulator.

Binance has also reportedly been under an investigation by the U.S. Department of Justice for allowing Russians to use the exchange in violation of U.S. sanctions.

According to the new report, Mastercard isn’t the only firm that has been distancing itself from Binance amid its regulatory issues worldwide. Visa also stopped issuing new co-branded cards with Binance in Europe as of July, Binance reportedly said.

Mastercard, Visa and Binance did not immediately respond to Cointelegraph’s request for comment.

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Binance to halt crypto debit card in Latin America, Middle East

August 24, 2023 Coin Telegraph

Binance

Binance didn’t reveal the exact reason behind the suspension but claimed it would only impact 1% of users in the affected regions.

Cryptocurrency exchange Binance will suspend its crypto debit card services in Latin America and the Middle East from Aug. 25.

The crypto debit card worked like other debit cards, allowing users to pay for day-to-day goods and services. The only difference is that these cards were funded by cryptocurrency assets.

The crypto debit card services in Latin America and the Middle East will be terminated by Sept. 21, but the exchange claimed refunds and disputes can still be processed until Dec. 20, 2023.

*Binance crypto debit card interface. Source: X*

The issue first came to light when an X (formerly Twitter) user enquired about issues with crypto debit cards in Colombia. Binance responded to the query with an announcement suggesting that debit card services will be suspended starting Aug. 25 without clarifying what led to the decision.

Hello there,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…
— Binance Customer Support (@BinanceHelpDesk) August 23, 2023

Binance first announced its plan for crypto-backed debit cards in April 2020 as it aimed to enter the global payment market. By July 2020, the crypto debit cards were being shipped to European countries and several others worldwide. The crypto exchange later partnered with payment processor Swipe, with intentions to offer crypto debit cards in the United States.

Cointelegraph reached out to Binance about the possible reasons behind suspending its crypto debit cards in Latin America and the Middle East, but the exchange did not provide this information. However, Binance told Cointelegraph that “only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this.”

While Binance claimed only 1% of such users would be impacted by the decision, some of Binance CEO Changpeng Zhao’s X posts about the announcement and responses to it were deleted.

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Bit2Me and Mastercard launch debit card with crypto cashback

February 10, 2023 Coin Telegraph

Coin Telegraph

The new debit card builds on technology already in place in the existing Bit2Me crypto card, but this time, card holders are eligible for up to 9% crypto cashback.

The merger of Web2 and Web3 tools continues as crypto-backed debit cards become more mainstream.

In an announcement on Feb. 10, Bit2Me, the largest Spanish cryptocurrency exchange, revealed its new cashback debit card in partnership with Mastercard.

The original Bit2Me card works for its users via the Mastercard network that hosts millions of businesses worldwide. This new update offers users up to 9% crypto cashback for all purchases made with the card online or in-store.

Leif Ferreira, the CEO and co-founder of Bit2Me, told Cointelegraph that the use of already known Web2 financial tools like debit and credit cards comes with the hope of greater adoption of this "revolutionary" technology

"[The] goal is that any user from anywhere in the world has easy access to the limitless world of Web3 financial services, at the touch of a button."

The card and wallet support eight cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Ripple (XRP), Solana (SOL) and Polkadot (DOT), along with the stablecoin Tether (USDT).

The company reportedly plans to add additional currencies throughout the year. Bit2Me is currently available to users in 69 countries around the world. However, users in the European Economic Area (EEA) are only eligible to apply for the virtual version of the card.

Bit2Me has had service expansion on its radar for some time, after its initial announcement in 2021 to offer services globally. Back in July, the exchange was quick to jump to help 100,000 blocked crypto investors onboard onto its platform after they wereshut out from the defunct local Spanish trading platform 2gether.

Meanwhile, Mastercard has also been active in offering new services and opportunities for users and clients in the Web3 space. It has chosen at least seven blockchain and crypto startups to be a part of its fintech accelerator program in the last year.

The company also partnered with Polygon to launch a Web3 musician accelerator program, focusing on the intersection of the music industry and emerging technologies.

On Jan. 31, Mastercard announced a new effort with Binance to launch their second prepaid crypto card in Latin America.

Stablecoins and CBDCs might play ‘meaningful role’ in payments — Visa CEO

January 25, 2023 Coin Telegraph

al kelly

Visa began working on a blockchain interoperability project in Sept. 2021 to support CBDC and stablecoin adoption but few updates have been made since.

The chief executive of credit card giant Visa remains confident that blockchain-powered solutions can be integrated into its services and offerings to power the next generation of payments.

Speaking on a call at Visa’s annual stockholder meeting on Jan. 24, outgoing CEO Al Kelly — who will officially step down on Feb. 1 — briefly shared the firm’s plans for Central Bank Digital Currencies (CBDCs) and private stablecoins.

According to a Jan. 24 report from San Francisco Business Times, Kelly said:

“It’s very early days, but we continue to believe that stablecoins and Central Bank Digital Currencies have the potential to play a meaningful role in the payments space, and we have a number of initiatives underway.”

“We’ve had an immaterial amount of investments in crypto funds and companies as we seek to invest in the payments ecosystem,” the outgoing CEO explained.

Kelly also confirmed that Visa’s balance sheet hasn’t been impacted by some of the “high-profile failures” that rocked the cryptocurrency space in 2022:

“We’ve had no credit losses related to these failures [...] In everything we do, please know that we’re extremely focused on maintaining the integrity of Visa’s payment system and the payment system in totality and of course, the reputation of our brand standing for trust.”

Over the years, Visa has worked on a number of crypto-related initiatives.

Its research team began working on a blockchain interoperability project in September 2021, named the Universal Payment Channel (UPC) initiative, the project was designed to establish a “network of networks” for CBDCs and private stablecoins to pass through various payment channels.

Visa hasn’t provided an update on the UPC in over 12 months, however.

More recently, the payment giant announced on Dec. 20, 2022, that it was chalking up a plan to allow automated bills to be paid out from a user’s Ethereum-powered wallet.

Visa has also rolled out several “zero fee” cryptocurrency debit cards of late including a now-terminated agreement with FTX and a partnership with Blockchain.com on Oct. 26, 2022, which is still in effect.

*A sample Visa-FTX debit card before Visa ultimately terminated the partnership agreement. Source:* *Yahoo Finance.*

While Visa’s 2022 annual report only included data up until Sept. 30 — about five weeks before FTX collapsed — more information may be revealed in Visa’s Q1 2023 earnings call on Jan. 26.

Visa President Ryan McInerney will officially replace Al Kelly as CEO on Feb. 1, while Kelly will remain on board as executive chairman.

McInerney appears to be equally, if not more bullish on blockchain-powered payment solutions too.

In an interview with Fortune in November 2022, McInerney said Visa still has “$14 trillion of cash out there being spent by consumers that can be digitized” and that they’re continuing to explore where crypto payments may be best leveraged.

Japan’s International Payments System will test plastic cards for CBDC

October 24, 2022 Coin Telegraph

Bank of Japan

Japan Credit Bureau will develop its CBDC infrastructure in collaboration with IDEMIA and Softspace.

Japan Credit Bureau (JCB), a Japanese analog to international payments systems like Visa or Mastercard, announced the start of its central bank digital currency (CBDC) infrastructure testing. The project will assumably prepare the payments platform for a national CBDC, which is currently being tested by the Bank of Japan (BoJ).

The infrastructure project, announced by the company in local media, will come under the title JCBDC and aims at adjusting the JCB’s existing credit card infrastructure for CBDC payments. The France-based provider of facial recognition technology IDEMIA and Malaysian Softspace will collaborate with JCB in the platform’s development.

The platform will consist of three major directions — a touch payment solution, an issuance and provision of plastic cards for CBDC and a simulation of the working CBDC environment. JCB also plans to adjust the mobile payment tools and QR codes, but in the later stages of testing.

JCB plans to develop a payment solution by the end of 2022 and start the demonstration experiments at actual stores by the end of March 2023.

The BOJ shared a three-phase trial outline for its CBDC back in Oct. 2020. The second phase of the trials, which would test the technical aspects of the issuance of the digital yen, should start this year. According to the BoJ governor, the digital yen could launch by 2026, and the decision won’t be made by the central bank alone.

There is still no certainty about the project launch or the possible scope of its implementation. In January, the former head of the BOJ’s financial settlement department advised against using the digital yen as a part of the country’s monetary policy.

JCB is not a newcomer to digital innovations — it started a pilot of a digital identity interoperability system based on blockchain technology in collaboration with Fujitsu Laboratories in 2020.

Mastercard taps Paxos to launch crypto trading for banks

October 17, 2022 Coin Telegraph

Banks

Mastercard will deploy its technology to integrate crypto trading into banks’ interfaces, while Paxos is set to provide its trading and custody services.

Mastercard officially announced on Oct. 17 a new program to enable financial institutions to bring crypto trading capabilities and services to their customers.

Called “Crypto Source,” the program is designed to allow users to buy, hold and sell cryptocurrencies, complemented by Mastercard’s proprietary Crypto Secure solution for additional security and compliance.

The tool is launched in cooperation with Mastercard’s existing partner Paxos Trust Company and is reportedly expected to launch in Q4 2022. Paxos is known for providing similar services to global payment giant PayPal, which launched its first crypto services in late 2020.

Within the new partnership, Paxos will provide crypto asset trading and custody services on behalf of the banks, while Mastercard will deploy its technology to integrate crypto trading into banks’ interfaces.

Ajay Bhalla, president of Mastercard’s cyber and intelligence unit, pointed out the company’s growing crypto expertise and commitment to the market. He mentioned Mastercard’s recent crypto-related investments, including acquisitions of the crypto intelligence service CipherTrace in September and the digital identity platform Ekata in April last year.

Announcing the news, Mastercard referred to the 2022 Mastercard New Payments Index, reporting that 29% of respondents globally hold cryptocurrency as an investment. Another 65% of respondents reportedly indicated a preference for crypto services to be provided by their current trusted financial institution.

“What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem,” Bhalla noted.

Paxos’ head of strategy Walter Hessert also highlighted the scale of Mastercard’s global network of financial institutions. According to the executive, the new tool will provide banks and creditors with the “most trusted way to offer safe, reliable crypto assets.”

Mastercard’s latest crypto initiative comes amid the total crypto market capitalization falling about 60% since the beginning of 2022. According to Jorn Lambert, Mastercard’s chief digital officer, it would be “shortsighted to think that a little bit of a crypto winter heralds the end of it.”

“As regulation comes in, there is going to be a higher degree of security available to the crypto platforms, and we’ll see a lot of the current issues getting resolved in the quarters in the years to come,” Lambert reportedly stated.

Mastercard has been actively working on various crypto and blockchain-related initiatives in recent years. In January 2022, Mastercard announced a collaboration with the Coinbase exchange to allow Coinbase NFT users to make purchases using Mastercard’s cards.

In October 2021, Mastercard partnered with the digital asset firm Bakkt to allow its United States-based customers to buy, sell and hold digital assets through custodial wallets.

Global payment giant Mastercard continues its efforts to promote cryptocurrency adoption by developing a new tool allowing banks to trade cryptocurrencies like Bitcoin (BTC).

FTX and Visa partner to permit crypto payments in 40 countries

October 7, 2022 Coin Telegraph

Coin Telegraph

FTX token surged over 7% on the news that Sam Bankman-Friend's company, FTX would roll out a debit card in partnership with payments giant Visa.

Spending cryptocurrency may become a lot easier. FTX, one of the world’s largest crypto exchanges, partnered with payments giant Visa to roll out debit cards in 40 countries worldwide.

The move would allow FTX users to pay for goods and services using debit cards that boast “Zero fees.” Plus, card ownership is free according to the company website.

Sam Bankman-Fried, the most influential person in crypto according to Cointelegraph’s Top 100, has long touted his desire to unveil an FTX debit card. His company's decision to partner with legacy payment rails — as opposed to crypto payment rails such as the Lightning Network — aligns with his views that the future of Bitcoin as a payments network is not viable. (BTC)

FTX token, the native cryptocurrency token of the FTX trading platform spiked 7% on the news, reaching highs of $25.62. The token’s all-time high is some way off, however, at almost $80.

*FTX token price in dollars over the past 24 hours. Source: CoinMarketCap*

For Visa, the development would rival competitor Mastercard’s recent forays into crypto. CFO Vasant Prabhu said “Even though values have come down there’s still steady interest in crypto,” referring to the 2022 crypto bear market.

Cointelegraph has reached out to FTX for comment and will update when possible.

Altcoins surge even as Bitcoin and Ethereum price fall toward key support levels

November 5, 2021 Coin Telegraph

Bitcoin Price

Altcoins like XYO, CRO and WNXM are capitalizing on BTC and ETH’s consolidation by moving higher.

Price action in the crypto market has not been for the faint of heart over the past 48-hours and it's clear that volatility following Bitcoin (BTC) and Ether’s (ETH) breakouts to new all-time highs.

While the top two cryptocurrencies fight to hold key support levels, the altcoin market has seen a handful of tokens post double-digit gains on Nov. 5 and Cointelegraph Markets Pro’s altseason indicator suggests the current market conditions line up with previous altseason price moves.

*Top 7 coins with the highest 24-hour price change. Source:* *Cointelegraph Markets Pro*

Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24-hours were XYO Network (XYO), Crypto.com Coin (CRO) and Wrapped NXM (WNXM).

XYO lists on Crypto.com

The XYO Network is a blockchain-based geospatial oracle network that taps into decentralized devices that anonymously collect, validate and record data on the XYO blockchain.

According to data from Cointelegraph Markets Pro, market conditions for XYO have been favorable for some time.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

*VORTECS™ Score (green) vs. XYO price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score for XYO began to pick up on Nov. 2 and reached a high of 77 around four hours before the price surged 103% over the next two days.

The spike in price of XYO comes as the token was listed on the Crypto.com app and a liquidity mining pool was launced on Gate where depositors can earn a 543.22% return on their investment.

CRO benefits from the Coinbase bump

CRO is the native token of the Crypto.com ecosystem and users can stake CRO alongside other cryptocurrencies on its app to earn rewards, as well and utilize their holdings to make everyday purchases via the Crypto.com Pay mobile payments app.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for CRO on Nov. 3, prior to the recent price rise.

*VORTECS™ Score (green) vs. CRO price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score for CRO began to pick up on Nov. 3 and reached a high of 76 around two hours before the price increased 64% over the next two days.

The strengthening momentum for CRO comes following the token's Nov. 3 listing on Coinbase and the signing of a multi-year contract with esports tournament host Twitch Rivals.

Nexus Mutual launches a new Shield campaign

WNXM is the wrapped version of the NXM governance token for the Nexus Mutual protocol. Nexus Mutual is a decentralized insurance protocol on the Ethereum network that offers users the ability to take out cover on smart contracts through the use of its native NXM token.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for CRO on Nov. 4, prior to the recent price rise.

*VORTECS™ Score (green) vs. WNXM price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score for CRO began to pick up on Nov. 3 and reached a high of 74 on Nov. 4, around one hour before the price spiked 47% over the next day.

The jump in the price of WNXM comes following the launch of a new shield mining campaign for the Premia Finance (PREMIA) project and the platform’s progress toward launching Nexus V2 which will enable the fund to pay out on partial claims.

The overall cryptocurrency market cap now stands at $2.702 trillion and Bitcoin’s dominance rate is 42.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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