Mastercard And Binance Bid Adieu To Crypto Cards In 4 Countries Amid Legal Challenge
- Mastercard and Binance will stop joint crypto card programs in select countries by Sept. 22, citing convenience for traditional currency payments via crypto holdings.
- Other Mastercard crypto projects remain untouched; the short-lived Brazilian financial accessibility alliance concludes.
- Binance faces legal issues, while Mastercard pursues new blockchain partnerships despite the termination.
According to Reuters, Mastercard, in collaboration with cryptocurrency exchange Binance, has announced the discontinuation of its crypto card programs in Argentina, Brazil, Colombia, and Bahrain.
The termination, set for September 22, comes as a significant move affecting users who utilized Binance cards to facilitate payments in traditional currencies through their cryptocurrency holdings.
While this decision impacts the mentioned countries, Mastercard assures that its other crypto-card initiatives remain unaffected.
Notably, the Binance cards provided a novel way for users to seamlessly conduct transactions in conventional currencies backed by their crypto assets on the Binance exchange.
The collaboration between Mastercard and Binance initially held the promise of enhanced financial accessibility for Brazilians through a Mastercard-powered Binance prepaid card. However, this partnership has been relatively short-lived, lasting just over six months.
Amidst this development, Binance has been grappling with legal and regulatory complications. U.S. authorities filed a lawsuit against the exchange and its CEO, Changpeng Zhao, citing allegations of deceptive operations.
In contrast, Mastercard’s pursuit of partnerships with other crypto firms continues, as the company’s Head of Crypto and Blockchain, Raj Dhamodharan, revealed earlier this year.
The inception of the Binance Card pilot took place in Argentina last August, aiming to bridge the gap between cryptocurrency usage and conventional purchases.
While Binance’s recent termination of crypto debit card services across Latin America and the Middle East, effective August 25, signifies a setback, the broader implications of this shift in strategy are yet to unfold.
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