MasterCard CEO: Libra's financial inclusion fails to meet expectations, and compliance is too vague

Many top investors have withdrawn from Facebook's Libra project on the grounds of regulatory concerns, and Mastercard is one of many companies that have broken their partnership with Libra. In a recent interview with the Financial Times, MasterCard CEO Ajay Banga claimed that key members of the Libra Association will not “do nothing that does not fully comply with local laws "Hard commitment.


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Banga elaborated on why Mastercard exited the Libra project, stating that the company must conduct due diligence by understanding customers, anti-money laundering and data management. However, the CEO also said that Libra's performance seemed a bit vague.

"Every time I talk to the main supporters of Libra, I say, 'Can you write it down? Their answer is no.'

In addition to security considerations, Mastercard is also skeptical of Libra's profit-making media. He pointed out, "When you don't understand how money is made, they are often made in a way you don't like." In addition to these existing doubts, Facebook announced its intention to develop the proprietary digital wallet Calibra before It also positions itself as an inclusive financial instrument. Banga explained:

"From this selfless idea to developing their own wallet, my feeling is 'this doesn't sound right.' As far as inclusive finance is concerned, the government must pay you in this currency and you have to treat it as A tool you can understand to accept, you can use it to buy rice and bicycles. If you receive Libra tokens, the tokens enter the Calibra wallet, and then convert to British pounds to buy rice, I do not understand this How the middle works. "

However, according to Lisa Ellis, a payment analyst at MoffettNathanson, regardless of whether Libra is launched, a blockchain-based payment system could pose a "survival threat" to private networks like MasterCard. However, Banga is not worried about this challenge, the CEO said:

"If the partners are not satisfied, they will blame you … Big banks are more difficult to negotiate than small banks. Big merchants are harder to negotiate than small traders. Big governments are harder to negotiate than small governments. So China is different from Vietnam . This is reality. "