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Regulatory and compliance concerns make Mastercard leave Libra Association

Monday 30 March 2020 11:57 CET | News

Mastercard has pulled out of the Facebook-led Libra project after developing concerns over its business model and compliance.

The company’s attitude towards Libra deteriorated as project members proposed linking what was supposed to be a globally inclusive currency to a proprietary digital wallet, Calibra. Financial inclusion would mean a government is able to pay citizens in a certain currency, which they must be able to understand how to use and must be usable in day-to-day transactions for items like food.

Moreover, a lack of a clear business model for Libra raised another red flag for Mastercard, as there were no obvious means for the Libra Association to become profitable or make money from its users. Other concerns include association members that might not firmly commit to KYC, AML controls or data management controls.

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Keywords: Mastercard, Libra Association, regulations, viability concerns, Facebook, cryptocurrency, digital assets, transactions, digital wallet, Calibra, KYC, AML
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies