Source: Blockchain Knight

David Marcus, the former head of Facebook’s Libra Crypto asset project, recently revealed the reasons for the failure of the project.

According to Marcus, despite the project’s robust design and extensive regulatory consultation, regulatory pressure and the withdrawal of funding from supporting agencies led to the project being halted.

On November 30, Marcus published an article on X detailing the series of events that led to the termination of Libra.

This blockchain-based payment system, later renamed Diem, aims to revolutionize global payments by combining high-performance blockchain with stablecoins.

However, Marcus said the system's failure 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, or the regulators simply did not kill the project from a legal or regulatory perspective."

"This is 100% a regulatory conspiracy. , the main method is to intimidate the banking institutions involved in this project.” Marcus revealed that Libra encountered bottlenecks immediately after it was announced in 2019. Although the team made some adjustments and delayed the launch of the project until 2021, regulatory opposition persisted.

Marcus emphasized that Fed Chairman Jerome Powell changed his stance after meeting with Treasury Secretary Janet Yellen as a turning point.

Marcus revealed that Yellen called supporting Libra "regulatory suicide," prompting the Federal Reserve to issue a warning to banks involved in the project.

In these calls, the Fed’s general counsel reportedly warned banks not to move forward with the Libra project, citing dissatisfaction with the project.

"The Fed held calls with all participating banks, and the Fed's general counsel read a prepared statement to each bank saying, 'We cannot prevent you from advancing and launching your projects, but we are I feel uncomfortable doing this. 'That's it, it's over.'

Since then, people in the crypto asset industry have supported Marcus' statement.

Former Libra board member Kathryn Haun and Gemini co-founder Tyler Winklevoss both highlighted how regulatory incentives derailed Libra.

Winklevoss said: "Gemini worked closely with David and his Meta team to help launch Libra (aka Diem)."

"When federal regulators rejected the project, we Just on the same page. It's all regulatory factors, nothing.What legal basis. ”

When looking back on this experience, Marcus emphasized the need for decentralization when building future financial systems.

He believes that BTC is an ideal foundation for such a network, and Lists the neutrality and tamper-proof design of BTC.

M. arcus concluded: “If you want to build an open currency network for the world, on which trillions of dollars can flow every day, and can be used for 100 years, it must be built on the most neutral, decentralized and On top of tamper-proof networks and assets, this is undoubtedly BTC. ”

Marcus’ revelations intensify scrutiny of ‘de-banking’ in crypto assets and technology sectors.

Recent allegations of regulatory-motivated financial restrictions have raised questions about U.S. regulation, regulation Further discussion of cross-cutting issues with innovation.