🤔Do you still remember the Meta stablecoin Diem (formerly known as Libra), which was once hailed as capable of changing the global payment system? Why did it fade away under the spotlight? Recently, Diem's former head, Marcus (David Marcus), revealed that behind this was a '100% political assassination'!
💸The Diem stablecoin launched by Meta in 2019 was originally intended to solve global payment issues by establishing a decentralized payment network integrated with the US dollar. However, this ambitious project faced strong resistance from the US Congress just two weeks after its announcement. Marcus was summoned to Congress to explain the concerns of lawmakers and regulators.
💔Marcus revealed that although there were no legal or regulatory obstacles from a technical perspective, political intervention made it impossible to move forward. He stated, 'This is 100% political assassination—executed by intimidating captured banking institutions.' Subsequently, Diem fell into endless adjustments and compromises aimed at appeasing external concerns about money laundering, consumer protection, and other issues.
💥However, even though Federal Reserve Chairman Powell expressed willingness to advance Diem in a limited way, then Treasury Secretary Yellen warned that allowing the plan to continue was 'political suicide.' Subsequently, the Federal Reserve pressured several banks, expressing discomfort with their participation in the plan, which completely doomed Diem.
💸It wasn't until early 2022 that Meta officially announced the end of the once-prominent project after deciding to sell Diem's intellectual property and assets to Silvergate Capital. Silvergate Capital also underwent liquidation in 2023 and declared bankruptcy in September.
😲Balaji, who served as the first CTO at Coinbase, stated in a tweet: 'Everything Marcus said is true.' He cited a public letter sent by the US government to Visa, Mastercard, and Stripe, warning these companies that they would face regulatory 'scrutiny,' aimed at preventing them from collaborating with Libra.
🤔Looking back, senators previously expressed strong doubts about Libra, pointing out that the risks posed by the project to consumers, financial institutions, and the global financial system had not been resolved. So, does this mean that a truly open and sustainable monetary network is destined to survive in the cracks of politics and regulation?
💡Marcus believes that a major lesson from the Diem project is that to establish an open and sustainable monetary network, it must be built on a 'neutral, decentralized, and impeccable' architecture and assets. In his view, Bitcoin is the only solution that meets these standards.
🔥So, can Bitcoin really become the cornerstone of future monetary networks? In the political and regulatory struggle, can Bitcoin maintain its neutrality and decentralized characteristics? All of this is worth our deep contemplation.
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