Halfway through this year, the Wirecard scandal shocked the world. What was once a tech darling, soon became a subject of controversy within financial circles. Before the news came to light, it appeared Wirecard could emerge as a dominant player in the crypto debit card space, but now, as Wirecard’s preliminary insolvency proceedings take place, the race to dominate the crypto card market has begun.
The dark past of crypto debit cards
In June, Wirecard filed for insolvency admitting 1.9 billion euros ($2.1 billion) absent from its accounts was non-existent. Former CEO Markus Braun was arrested and suspected of market manipulation. Wirecard was not the first, and it is unlikely to be the last to face regulatory scrutiny of its business practices in the crypto debit card space.
In 2018, WaveCrest, a worldwide digital payment solutions provider, was ordered by Visa
During the ICO craze of 2017, Central Tech promised the development of Centra Card, which allegedly could be used at Visa and Mastercard
Enterprise lend credibility
In July 2020, Visa posted a blog titled, Advancing our approach to digital currency, in which the company described its vision for digital currency. With plans to partner with many blockchain companies, Visa intends to provide customers with a broad array of technologies:
- Work with licensed and regulated digital currency platforms such as Coinbase and Fold.
- Create a bridge between Visa’s network of 61 million global merchants and cryptocurrencies.
In an expansion of its current cryptocurrency program, Mastercard is making it easier for companies in the digital currency space to issue branded payment cards as seen recently in a deal with Wirex.
- Allows digital currency companies to issue cards on Mastercard’s network.
- Wirex became the first native cryptocurrency platform to gain principal membership.