Mastercard, one of the leading global payment companies, has decided to end its collaboration with Binance, the leading cryptocurrency exchange, regarding crypto card programs in Argentina, Brazil, Colombia, and Bahrain. This decision, as reported by Reuters, will impact four cryptocurrency card programs in the aforementioned countries, although the reasons for this unexpected decision have not yet been officially revealed.
In recent years, cryptocurrencies have gained increasing popularity, becoming an alternative to traditional currencies and attracting investors worldwide. In response to the growing interest, many corporations began to offer crypto-related products, including payment cards. One such partnership was the collaboration between Mastercard and the Binance exchange, which allowed users to pay with cryptocurrencies at over 90 million merchants worldwide.
Unfortunately, this collaboration seems to be coming to an end, surprising many market observers. While the reasons for this move are not yet known, it has been decided that the cryptocurrency card programs will be terminated in four selected countries. Interestingly, earlier this year, Binance, in partnership with Mastercard, introduced a new prepaid card in Brazil, indicating that it is one of the ten most important markets for the exchange.
It’s worth noting that Binance is not the only exchange with which Mastercard has collaborated. The company also has partnerships with other exchanges, such as Gemini. However, while some partnerships flourish, others, like the one with Binance, seem to be facing challenges.
Binance emphasized that the impact of this decision on users is minimal. As reported by the company, less than 1% of users in the mentioned countries will be affected by this change. For those who used this product, the card will be available until September 21, 2023.
Mastercard’s decision to end its collaboration with Binance on cryptocurrency cards in selected countries has undoubtedly surprised the market. Time will show what further consequences this unexpected change will bring. However, it’s certain that cryptocurrencies and their integration with the traditional financial system are still evolving, and the market remains dynamic with unforeseen twists and turns.
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