Article reprinted from: Blockchain Knight
Source: beincrypto
Translation: Blockchain Knight
David Marcus, the former head of the Facebook Libra cryptocurrency project, recently revealed the reasons for the project's failure.
According to Marcus, despite the project's robust design and extensive regulatory consultation, regulatory pressure and the withdrawal of supporting institutions led to the project's halt.
On November 30, Marcus published an article on X detailing the series of events leading to the termination of Libra.
This blockchain-based payment system was later renamed Diem, aiming to revolutionize global payments by combining high-performance blockchain with stablecoins.
However, Marcus stated that the failure of the system had little to do with legal or regulatory issues.
On the contrary, regulatory forces played a decisive role.
Marcus said: "There is a point worth mentioning here, that the government or regulatory bodies did not stifle the project from a legal or regulatory perspective at all."
"This is 100% a regulatory conspiracy, with the main tactic being to intimidate the banks involved in this project."
Marcus revealed that Libra encountered bottlenecks immediately after its announcement in 2019. Although the team made some adjustments and postponed the project launch to 2021, regulatory opposition remained.
Marcus emphasized that Federal Reserve Chairman Jerome Powell changed his stance after meeting with Treasury Secretary Janet Yellen, marking a turning point.
Marcus revealed that Yellen called supporting Libra 'regulatory suicide,' which prompted the Federal Reserve to issue warnings to banks involved in the project.
It was reported that during these calls, the Federal Reserve's general counsel warned banks against advancing the Libra project due to dissatisfaction with the project.
"The Federal Reserve spoke with all participating banks, and the Federal Reserve's general counsel read a prepared statement to each bank, saying 'We cannot stop you from advancing and launching the project, but we are uncomfortable with you doing so.' And that was it; everything ended."
Since then, many in the crypto asset industry have supported Marcus's claims.
Former Libra board member Kathryn Haun and Gemini co-founder Tyler Winklevoss both emphasized how regulatory motivations derailed Libra.
Winklevoss stated: "Gemini worked closely with David and his Meta team to help launch Libra (also known as Diem)."
"When federal regulators vetoed the project, we were all on the same front. It was all regulatory factors, with no legal basis."
Reflecting on this experience, Marcus highlighted the necessity of decentralization when building the future financial system.
He believes BTC is the ideal foundation for such a network, citing BTC's neutrality and tamper-proof design.
Marcus summarized: "If we want to establish an open monetary network for the world, capable of facilitating trillions of dollars daily and sustainably used for 100 years, it must be built on the most neutral, decentralized, and tamper-proof networks and assets, which undoubtedly is BTC."
Marcus's revelations intensified scrutiny in the crypto asset and technology fields regarding 'de-banking.'
Recent allegations regarding financial restrictions motivated by regulation have sparked further discussions about the intersection of U.S. regulation, supervision, and innovation.
