VC Paul Graham Says Crypto Will Kill Credit Card Companies Like Visa

VC Paul Graham, the co-founder of Y-Combinator, says that there’s a future in which people will choose crypto for payments rather than credit cards like Visa and Mastercard, because of the censorship-resistant prospects. In our crypto news today, we take a closer look at what Graham thinks will happen in the near future.

VC Paul Graham tweeted on his profile after Mastercard and visa said they will not process payments for Pornghub anymore, and said that crypto could easily replace them. Both credit card companies announced they will no longer process payments for the Pornhub website after an investigation by the New York times that uncovered videos of child abuse and rape on the platform. Graham who is the co-founder of the startup accelerator Y-Combinator, tweeted a take on the developments and suggested that credit card companies and their decisions could be a boon to the crypto industry:

 “Possible future scenario: Credit card companies become increasingly picky about who they’ll process transactions for, and this becomes the thing that tips the general public into using cryptocurrency in transactions, ultimately killing credit cards.”

Possible future scenario: Credit card companies become increasingly picky about who they'll process transactions for, and this becomes the thing that tips the general public into using cryptocurrency in transactions, ultimately killing credit cards.

— Paul Graham (@paulg) December 11, 2020

Graham thinks that credit card companies that decline to process transactions for companies will cause more and more people to turn to crypto thanks to their censorship-resistance prospects. However, his tweet didn’t quite reference the news about Pornhub. Graham has about 1.2 million followers and the tweet generated thousands of interactions in a few hours.

Alexis Ohanian, Reddit’s co-founder replied and suggested that Bitcoin’s shopping rewards app Lolli will help boost crypto adoption. Reddit was a part of the  Y-combinator’s first startup class and Ohanian is a former partner at the accelerator startup. Visa and Mastercard followed the lead of PayPal and denied services to PornHub. Pornhub now accepts Litecoin, Verge and Bitcoin for its premium subscription services and allows webcam users to accept payments in tether, and the remaining accepted credit card which is Japan Credit Bureau and Discover.

Pornhub said that they will clamp down on posting of illegal content including allowing only identified users to post content and expand the moderation and flagging processes:

 “We have always been committed to eliminating illegal content, including non-consensual material and child sexual abuse material (CSAM).”