NEW YORK—The appeal of cryptocurrency credit cards is fading, according to a new report that suggests the ongoing crypto winter has put a chill on what was once a fast-growing offering.
“For the past few years, crypto-earning credit cards have seemed destined to be the next big thing,: stated Yahoo Finance. “Announcements about forthcoming products poured in throughout 2020, cards started hitting the market in earnest in 2021, and by mid-2022, it looked like the trend would only accelerate.”
But that was before the so-called crypto-winter arrived last year and cooled the total value, or market cap, of the largest 100 cryptocurrencies by about 70% from a year earlier, Yahoo Finance said.
“The fledgling crypto credit card segment was not immune,” the report stated. “Some cards were discontinued entirely, others eliminated the ability to redeem rewards for cryptocurrency, and still others that were promised have yet to make it to the market. That's partly because card issuers face a different landscape in the wake of crypto winter.”
Questions of Access
Added James Wester, director of cryptocurrency and co-head of payments at Javelin Strategy & Research, which provides insights to financial institutions, "There are still some questions about access to crypto. There has been a change to questions about the regulatory environment, what it means (for issuers) from a risk and compliance standpoint."
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