Source: beincrypto
Translated by: Blockchain Knight
David Marcus, the former head of the Facebook Libra crypto asset project, recently revealed the reasons behind the project's failure.
According to Marcus, despite the project being well-designed and undergoing extensive regulatory consultation, regulatory pressure and the withdrawal of support institutions still led to the project's halt.
On November 30, Marcus published an article on X detailing a series of events that led 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 a stablecoin.
However, Marcus stated that the system's failure was largely unrelated to legal or regulatory issues.
On the contrary, regulatory forces played a decisive role.
Marcus stated, 'There is a key point worth mentioning: the government or regulatory agencies did not kill the project from a legal or regulatory standpoint.'
This is a 100% regulatory conspiracy, primarily using intimidation against the banks involved in the project.
Marcus revealed that Libra encountered roadblocks immediately after its announcement in 2019. Although the team made some adjustments and postponed the project's launch to 2021, regulatory opposition persisted.
Marcus emphasized that Federal Reserve Chairman Jerome Powell changed his stance after meeting with Treasury Secretary Janet Yellen, marking a turning point.
Marcus disclosed that Yellen referred to supporting Libra as 'regulatory suicide,' prompting the Federal Reserve to warn banks participating in the project.
According to reports, during these calls, the Fed's general counsel warned banks not to advance the Libra project, citing dissatisfaction with the project.
The Federal Reserve held calls with all participating banks, and the Fed's general counsel read a prepared statement to each bank, stating 'We cannot stop you from advancing and starting the project, but we are uncomfortable with you doing so.' And that was it; everything was over.
Since then, industry professionals in the crypto asset sector have rallied behind Marcus's statement.
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 side. It was all regulatory factors, with no legal basis.
Reflecting on this experience, Marcus emphasized the necessity of decentralization in building the future financial system.
He believes that BTC is an ideal foundation for such networks, citing BTC's neutrality and tamper-proof design.
Marcus summarized, 'If you want to create an open monetary network for the world, where trillions of dollars can flow daily and be sustainable for 100 years, it must be built on the most neutral, decentralized, and tamper-proof network and assets, which undoubtedly is BTC.'
Marcus's revelations intensified scrutiny over the 'de-banking' movement within the crypto asset and technology sectors.
Recent allegations regarding regulatory motivations for financial restrictions have sparked further discussions about the intersection of regulation, oversight, and innovation in the U.S.
