Mastercard CEO explains why they left Libra

[Zed0X]

It's pretty obvious that it has something to do with the pressure being put on by government authorities from different countries and, of course, whether it will benefit their company in the long run. The guy basically thought that it's not worth the risk and that the project doesn't make sense anymore.

It went from this altruistic idea into their own wallet. I’m like: ‘this doesn’t sound right.

If you get paid in Libra [coin] . . . which go into Calibras, which go back into pounds to buy rice, I don’t understand how that works.

A lack of a clear business model for Libra raised another red flag for Mastercard. Banga said there were no obvious means for the Libra Association to become profitable or make money from its users. "When you don’t understand how money gets made, it gets made in ways you don’t like," he said.

Read more https://www.coindesk.com/mastercard-left-libra-association-on-regulatory-and-viability-concerns-says-ceo

[damsix]

I think it is not "pressure" from the government but it is indeed a "must" that must be had by LIBRA because the government knows which will be the best for its people.
LIBRA is from crytpocurrency which is very difficult to control its price and indeed Mastercard also has the same fear, especially CEO MasterCard is someone who understands with every transaction in the world.

[Zed0X]

I think it is not "pressure" from the government but it is indeed a "must" that must be had by LIBRA because the government knows which will be the best for its people.

They don't want anything that will shake up the current financial system and they perceive that's what Libra is trying to achieve. So what's the best thing for them to do? Pressure by creating a negative image about this project and announce the plan to make new laws against it.

LIBRA is from crytpocurrency which is very difficult to control its price and indeed Mastercard also has the same fear, especially CEO MasterCard is someone who understands with every transaction in the world.

Libra will be a stable coin so why are you concerned about price volatility? Mastercard is worried mainly about how it will profit from joining Libra.

[aiviaa485]

Mastercard is worried mainly about how it will profit from joining Libra.

Usually this relates to insiders who seek to gain advantage in narrowness, right?
So we can conclude that MasterCard is eager to seek profits in the results of cooperation with LIBRA and this will certainly be a pressure on LIBRA.
LIBRA must think even more sophisticated so that there is no cheating politics in the business of cooperation.

[Zed0X]

~ LIBRA must think even more sophisticated so that there is no cheating politics in the business of cooperation.

I don't know how you came up with that. I think you should read the OP again or the article shared there. The one issue cited was the business model of Libra that is no longer viable in the eyes of the Mastercard CEO and he was being realistic. There was no speculation about cheating or playing politics.

[zendicator]

When the US tries to grill Libra team especially the owner of Facebook, many of its partners left because they do not want to get involve in any regulatory issues concerning libra. Obviously most companies partnered to libra in past years because the Facebook is very popular and that is the main reason.

[endlasuresh]

If this is the problems for Mastercard, then they could have opened their own blockchain. Zuckerburg is a bummer always do dance so it is a crap time to invest in Libra. I think this is the month to release Libra in the market, but still waiting for their launch.
Libra might not succeed like Bitcoin did because of poor structure and implement.

[Zed0X]

If this is the problems for Mastercard, then they could have opened their own blockchain.
~

That doesn't make sense. After seeing how regulators responded to Libra, why would they risk being scrutinized? Besides, Mastercard are cautious with distributed ledger technology and have been negative with cryptocurrencies in the past according to the article. With that said, it is safe to say that they partnered with Libra simply for the money.

[Alcor]

Of course, MasterCard does not need the problems that Libra began to haunt. After the finance ministers of the European Union countries announced that they would prohibit the circulation of Libra in their countries, and in the US Congress they began to prepare a special law against the appearance of this coin, it became clear that Libra was expecting big problems. Now for a long time this coin has not been heard about. Given that many states are now working on the issue of their national stable coin, the Libra project has lost its uniqueness.

[mlawson71]

What is more, apparently key members of the Libra Association refused to assure Banga that the business would be conducted in a manner “fully compliant with local law.”

[Zed0X]

~ Given that many states are now working on the issue of their national stable coin, the Libra project has lost its uniqueness.

Yes, this is something that Libra existing partners would be considering. It's going to be one reason if they would ever follow the footsteps of Mastercard.

What is more, apparently key members of the Libra Association refused to assure Banga that the business would be conducted in a manner “fully compliant with local law.”

Well, they are being honest with him. They can't really give an assurance because that is not something that they can control. That is up to the regulators and all Libra can do is try to comply.

[mlawson71]

True, there is that at least. But it is concerning that they can't guarantee that to begin with.