Mastercard Pulls out of Libra Project on Facebook

Mastercard Pulls out of Libra Project on Facebook

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In an interview with the Finacial Times, Banga says first of all that the leaders of Libra could not commit themselves to following the laws about “knowing their customers, money laundering, and data management” and “every time you talked to Libra’s main proponents about putting that in writing, they wouldn’t. ‘

Furthermore, the CEO of global payments argues that Libra could potentially generate revenue in unsavourable ways because he does not see how it would otherwise.

He then said, “If you don’t understand how money is made, it’s made in ways you don’t like.”

And last but not least, Banga has serious concerns about the fact that Facebook has proposed the concept of Libra as a decentralized network operated by the various organizations that make up the Libra Alliance – yet Libra coins are to be deposited in the Calibra wallet of Facebook itself.

A Brief Glance at Libra

In 2019, Facebook revealed a plan to release a new global cryptocurrency called Libra.

While the coin hopes to go public in 2020, it’s garnered much anticipation from crypto-enthusiasts and even more scepticism from crypto-critics.

When it was first introduced, Libra was made up of 28 founding members — including names like Mastercard, PayPal, Xapo Holdings Limited, Uber Technologies, Spotify AB and Visa.

Each of these founding members paid approximately $10 million to join the Libra Association, claim dividends on earned interest in proportion to their investment, and have one vote in the Libra Association Council.

Over the last few months, Facebook has faced intense scrutiny over plans to release the coin. Since proposing the idea, more than eight key players have ditched the project.

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