As America’s tech titans conquer more of its industries and beyond, regulators and governments have become increasingly concerned about their widespread power and influence.
Actually, Facebook, Twitter and Google’s parent company Alphabet came out ahead of an antitrust hearing in Congress in July.
The main concern of the government is that these companies use their authority to suppress competition and manipulate users in order to maintain their leading position in the market.
The US Department of Justice is considering the latest in a series of ongoing antitrust charges and investigations against corporate giants against Visa. The Justice Department said in a public statement that it was Investigation of the gigantic payment assumption of the financial services company Plaid.
The statement alleges that Visa’s management and advisory partner, Bain Company, has failed to comply with the department’s request for a civil investigation and withholding important documents related to the acquisition. The information requested by the company is deemed necessary for the department to analyze the fairness of the transaction and its impact on existing competition.. The Justice Department apparently fears Visa violated antitrust laws to keep its competition at bay.
Despite the fiasco, the payment giant appears to be expanding its territory not only in the traditional financial landscape, but also in crypto payments.. Visa cards processed nearly $ 2.2 trillion in transactions in the fourth quarter of 2020, outperforming second largest payment processor, Mastercard, by more than $ 1.25 trillion. Even in the crypto space, the company has built a solid foundation and powers some of the most famous crypto cards.
In addition to Visa’s already extensive cryptocurrency reach, San Francisco-based cryptocurrency exchange Coinbase announced plans Implementation of a cryptocurrency debit card with Visa technology in the USA. The card has been available in the UK and the European Union since 2019. Early next year, Coinbase will also ship their cards to people in all states of the United States except Hawaii.
According to Coinbase The card supports stablecoins and other cryptocurrencies that are supported on its platform. Users can use their crypto debit cards with Visa technology to make payments or withdraw funds in any portal that accepts Visa cards..
Crypto credit and debit cards certainly make crypto payments more convenient. The integration of cryptocurrencies in PayPal is another important step for the introduction of cryptocurrencies. However, the continued expansion of these companies into the fintech space can become a problem for the US government. While these companies’ non-compliance with antitrust laws was already a major problem for the government, the slow but successful growth in the decentralized financial world can be seen as an even bigger problem.
Facebook’s regulatory oversight of the Libra cryptocurrency project is a good example of how cautious the government is about centralized and private cryptocurrency projects that have the potential to reach a broad user base.