Major U.S. payments firms Visa Inc (NYSE:V). and Mastercard Inc (NYSE:MA). made the announcements that they would be suspending operations in Russia as a result of the invasion of Ukraine, stating that they would work with clients and partners to cease all transactions there.
Blocking Cards in Russia
In the span of just a few days, all transactions carried with Visa credit and debit cards issued in Russia will no longer work in transactions outside of the country, and any Visa cards issued outside of Russia will cease to work within the country.
Al Kelly, the Chief Executive Officer at Visa, said in a statement that: “We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed.”
U.S. President Joe Biden, during a call with Ukraine’s President, Volodymyr Zelenskyy, welcomed the decision by Visa and Mastercard to suspend operations in Russia, according to the White House.
“President Biden noted his administration is surging security, humanitarian, and economic assistance to Ukraine and is working closely with Congress to secure additional funding.”
Interestingly, the Bank of America (NYSE:BAC) said earlier this year that Solana would be the Visa of the Digital Asset World, ahead of Ethereum.
On the Flipside
- The move by the payment firm giants could mean more disruption for Russians, who are already bracing for an uncertain future of spiraling inflation, and could look to utilize cryptocurrencies as an alternative.
Why You Should Care
A growing number of financial and technology companies have suspended Russian operations which will ultimately lead to Russians trying to find new ways through which to conduct payments, and could lead to heightened usage and adoption of crypto.
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