FTX’s troubles are far from over. After losing its assets due to mismanagement and a hack, the exchange is now losing its partners. Payment giant Visa has announced the termination of its contract with FTX. The two companies were planning to set up a debit card to facilitate crypto payments in about 40 countries.
No Visa-FTX card
Payments company Visa has unsurprisingly announced the termination of its crypto card launch agreement with FTX. In addition, the American giant announced the cancellation of the Visa-FTX debit card already operational in the United States.
This measure is a result of the economic situation that FTX is going through. Indeed, the exchange is at the end of the abyss after a history of mismanagement of assets of its users has led to the fall of its capital.
In addition, the exchange was the victim of a ” ” “hack ” ” ” that cost more than 375 million dollars. As a result, withdrawals are frozen and the platform’s users do not know where to turn. A painful situation that is being closely monitored by FTX’s partner Visa.
The situation with FTX is unfortunate and we are closely monitoring the situation. We have terminated our global agreements with FTX and their U.S. debit card program is being discontinued by their issuer.A Visa spokesperson tells Reuters
The partnership between Visa and FTX was announced with great fanfare last October.
It was to allow the two companies to launch a debit card. With this card, FTX customers in 40 countries in Latin America, Asia and Europe should make purchases with their cryptocurrencies.
No worries for Mastercard, the Visa competitor
The termination of the contract with FTX delays Visa’s entry into the crypto ecosystem a bit more. This is not the case for its competitor Mastercard, which is expected to stay ahead of the curve.
Like its competitor, payment company Mastercard is considering launching a crypto card. Instead, the American giant had partnered with Binance and EurocoinPay, two crypto exchanges that are showing robust economic health.
Indeed, in the wake of the FTX collapse, Binance released its holdings to reassure its users. In a statement, the exchange said it holds 475,000 Bitcoin, 4.8 million Ethereum, 58 million BNB, 17.6 billion USDT stablecoins, 21.7 billion BUSD tokens and 601 million USDC. In total, Binance’s funds revealed in this release exceed $70 billion.
The breakup of the Visa-FTX partnership reveals that the exchange’s troubles could be irreversible. The important lesson to be learned from the FTX collapse is that you should not keep your assets on a centralized exchange. The best solution is to use a Ledger.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.