Mastercard explains the reasons for his departure from the project Libra

6 February 2020 by Victor

When Mastercard, Visa and a handful of key partners have pulled the bow on the project Libra last October, the echoes resonating within the crypto-community, especially because of the silence of these former employees of Facebook on the grounds of their remoteness. Ajay Banga, CEO of Mastercard, then reveals the bottom of this case.

A business model that does not hold the road

Apparently, the project would have no business model clear. It will be difficult for the Association to imagine that profitability is at an appointment and that investors can really get to grow their money, supports the character.

“When you don’t understand how the money is earned, it is done in a way that you don’t like “, he continued.

In addition to concerns about the integrity of the data on Facebook, the members of the Libra Association have neglected an essential step on the measures of compliance, such as audits knowledge of customer (KYC) and anti money laundering (AML).
But above all, the giant of the digital payment resolved to turn back, and to exit Calibra, the draft digital portfolio of Libra. The purpose of this tool is defined at the beginning, such as the promotion of financial inclusion, the project Libra would have subsequently changed the location to the destine for an exclusive use for the community Facebook.

“It went from this idea of altruistic to their own portfolio. I say to myself: “it doesn’t sound good “, he retorted

The skepticism of Mastercard is not dispelled

This event reveals once again the very cautious approach of Mastercard vis-à-vis the crypto-currencies, although the company has already sponsored several initiatives based on the Blockchain.
In 2014, Matthew Driver, president of Mastercard for South-East Asia, argued that the bitcoin and other crypto-currencies do not have a clearly defined goal, and could not be a method of trusted payment.
And earlier in July 2018, Banga spoke of the crypto-currencies of garbage while stating that they should not be considered as a medium of exchange.
What do you think of the explanations provided by Mastercard ? Respond in the comment section below.
(Be the FIRST to vote)

Cryptocurrency Market