Libra Project Collapse: Ex-Facebook Exec Reveals ‘100% Political Kill’

David Marcus, the former leader of Facebook’s now-defunct Libra project, has alleged that political resistance was the key factor behind the collapse of the stablecoin initiative.

In a detailed post on X, Marcus stated that the project’s shutdown was a result of a “100% political kill,” citing behind-the-scenes actions by regulators and government officials as the main cause.

Facebook’s Libra project, aimed to create a global digital currency designed to facilitate fast, low-cost transactions across borders. The main goals of the project were to provide financial inclusion for the unbanked, offer a stable alternative to volatile cryptocurrencies, and streamline digital payments by leveraging blockchain technology.

Libra, later rebranded as Diem, faced intense global pushback despite months of briefings with key regulators before its launch, according to Marcus.

Marcus added that following the project’s June 2019 announcement, he was summoned to testify before the Senate Banking Committee and the House Financial Services Committee just two weeks later. He noted that his testimony marked the beginning of two years of constant efforts and adjustments to address concerns from lawmakers and regulators.

In the spring of 2021, after addressing regulatory concerns related to financial crime, money laundering, consumer protection, reserve management, and other issues, Marcus stated that the company was ready to launch.

How Libra Was Killed.

I never shared this publicly before, but since @pmarca opened the floodgates on @joerogan’s pod, it feels appropriate to shed more light on this.

As a reminder, Libra (then Diem) was an advanced, high-performance, payments-centric blockchain paired with a…
— David Marcus (@davidmarcus) November 30, 2024

Backing Libra Project “Political Suicide,” Politician Allegedly Said

A limited pilot was slowly rolled out with some members of the Federal Reserve of Governors in support of it. However, Marcus alleges that U.S. Treasury Secretary Janet Yellen warned Federal Reserve Chair Jay Powell that supporting the project would be “political suicide,” and she would not back him if he allowed it to proceed.

Marcus urged caution in taking this information at face value but stated that it marked the turning point when the Libra project was effectively shut down.

Moreover, Marcus also claimed that the Federal Reserve began holding calls with all participating banks, reportedly telling each one: “We can’t stop you from moving forward and launching, but we are not comfortable with you doing so.”

According to reports, lawmakers and regulators were concerned about the potential impact of a Facebook-backed offering on the global financial system and the control that central banks maintain over currency. Marcus and several key figures involved in the project left in late 2021.

In concluding his post, the former Facebook executive emphasized that the team learned several valuable lessons throughout the process. He stressed that to build a truly open global financial network, it must be based on the most neutral, decentralized, and secure asset—Bitcoin, which he asserted is “hands down” the best choice.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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