According to ChainCatcher, David Marcus, the former head of Facebook's blockchain project Libra (later renamed Diem), stated that the failure of Libra was 'completely due to political suppression.' He revealed that the opposition from U.S. Treasury Secretary Janet Yellen became a key turning point and noted that the Federal Reserve subsequently discouraged banks from supporting the project. Despite adjustments made to address regulatory concerns, Libra was sold to Silvergate Bank in 2022, but the latter abandoned it a year later.
Politico reports that Facebook's dual identity as a stablecoin issuer and a commercial entity has raised concerns about the concentration of economic power, further intensifying the pressure on the project. After the collapse of Libra, some team members turned to blockchain projects like Aptos and Sui, and Marcus also founded Lightspark, focusing on the Bitcoin Lightning Network.