The post The Untold Story of How Politics Ended Facebook’s Libra Project appeared on BitcoinEthereumNews.com.

David Marcus, the former leader of Facebook’s Libra cryptocurrency project, has revealed the factors behind the initiative’s downfall. According to Marcus, political pressures and the debanking of supportive institutions were instrumental in halting the project despite its robust design and significant regulatory consultations. How Facebook’s Libra Was ‘Politically Killed’ In a post on X (formerly Twitter) dated November 30, Marcus detailed the chain of events that led to Libra’s demise. The blockchain-based payment system, which was later rebranded as Diem, aimed to revolutionize global payments by pairing a high-performance blockchain with a stablecoin. However, Marcus stated that its failure had little to do with legal or regulatory issues. Instead, political forces played a decisive role. “One essential point is worth making here. There was no legal or regulatory angle left for the government or regulators to kill the project. It was 100% a political kill in — one that was executed through intimidation of captive banking institutions,” he stated. Marcus revealed that Libra faced immediate resistance after its 2019 announcement. Although the team made adjustments to address concerns and delayed the project’s launch to 2021, political opposition remained unrelenting. He highlighted a turning point when Federal Reserve Chair Jerome Powell reportedly shifted his stance after meeting with Treasury Secretary Janet Yellen. Marcus disclosed that Yellen called supporting Libra “political suicide,” prompting the Federal Reserve to issue warnings to banks involved with the project. During these calls, the Fed’s general counsel reportedly warned banks against advancing Libra, citing discomfort with the project. “The Fed organized calls with all the participating banks, and the Fed’s general counsel read a prepared statement to each of them, saying: ‘We can’t stop you from moving forward and launching, but we are not comfortable with you doing so.’ And just like that, it was over,” Marcus…

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Filed under: News - @ December 1, 2024 11:20 pm