The National Football League (NFL) has decided to prohibit crypto-related transactions at this year’s Super Bowl because they could open the door to fraud or other illicit activity. Is the NFL’s ban temporary or permanent?
Much like the NBA has a ban on cryptocurrency, the National Football League also prevents its players from accepting cryptocurrency as payment. The NFL has banned all bitcoin and other cryptocurrencies to deter teams from investing in this digital currency because it disrupts their current sponsorships.
The NFL has banned cryptocurrency ownership as a whole, and the specific reason for doing so will be explained. For a long time now, NBA teams could accept cryptocurrency for sponsorship because it was straightforward to convert bitcoin into dollars. However, due to new directives from the NBA that included strict rules on crypto sponsorship and sports teams committing investable money in crypto, the NFL has decided to take a different approach. The National Football League (NFL) has prohibited cryptocurrency because it might lead to fraud or other illicit activity.
The exact reason why the NFL is banning cryptocurrency sponsorship as a whole is unknown. We know that the NFL may have banned cryptocurrency to avoid potential disruptions in their existing sponsorships.
Impact on Sponsorships
The NFL has a lot of sponsorships that would be endangered if players from their teams decided to accept cryptocurrency as payment. Any blockchain-based platform aimed at disrupting the existing systems can be a real threat for companies sponsoring the NFL.
That deal could have been endangered if any player decided to accept Bitcoin as payment for his services. What is even more concerning is that it would have been impossible to get fiat currency out of Bitcoin, which means the NFL would be losing out on a lot of money.
The second reason why the NFL may have banned cryptocurrency is that they don’t believe in blockchain technology. That may sound crazy, but it’s a reasonable argument. NFL Commissioner Roger Goodell believes in blockchain technology and the blockchain payment systems, such as those offered by Bitcoin. However, he opposes the NFTs that could disrupt their current sponsorships. He has a point because sponsorships make teams profitable, so disrupting them is not in their best interests. In other words, the NFL is banning cryptocurrency to prevent NFTs like Bitcoin from disrupting their sponsorships.