In a recent Financial Times report, the CEO of Mastercard explained why the company left the Libra project. According to him, part of the reason was due to the unwillingness of the Libra officials to put verbal willingness to comply with regulation into writing.
Besides that, the CEO noted there was no clear business model, which meant that the Libra project might make money in ways that Mastercard did not like. Besides that, they were uncomfortable with the altruistic vision of financial inclusion as well as the Calibra wallet.
Companies that Left Libra
Initially, Facebook Libra had attracted the attention of major firms who wanted to be part of this revolutionary project. However, regulatory backlash caused some of the major firms to leave the project. This happened at the time of making a written commitment and signing the Libra charters. Most companies such as PayPal, Via, Stripe, eBay, Mastercard, Booking.com, and Mercado Pago decided to back out. The latest to leave the project was Vodafone. Thus far, the main companies left in the project are Lyft, Spotify, Uber, and the Calibra wallet.
The Mastercard Exit
Mastercard exited the project in 2019, shortly after regulators began to express concerns over the project. In the FT article, the CEO expressed discontent about Libra. He said that every time they held serious discussions and he requested something to be put in writing, they simply refused. Besides that, he said it was unclear how Libra was going to make money. He said that if you do not understand how a project will make money, it would end up making it in ways you do not like.
He also said that he was not buying the idea of financial inclusion, which was based around the Facebook Calibra wallet. In his opinion, if the project was serious about inclusion, it needed to work with governments. Many others have expressed concern about Calibra. Facebook claims that there will be many Calibra wallets. However, it is worth noting only theirs will have a ready market of 2.5 billion people globally.