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Libra, Facebook’s former digital currency project, was ruthlessly destroyed by US authorities. According to the director of that currency, David Marcus, the case was a politically motivated witch hunt. The crypto businessman assures that Treasury Secretary Janet Yellen was behind this conspiracy.
It recounts the process of annihilation of the project by the Biden administration. He emphasizes that the currency did not have any type of flaws and passed all existing regulations within the United States.
In a recent publication titled How Libra was killedMarcus offers details about the development of the entire process. Likewise, it makes clear how the ban on the project was politically driven. He reports that Janet Yellen warned Federal Reserve Chairman Jerome Powell not to give the go-ahead to Libra.
After the rejection, those in charge of the project tried to make changes that will further strengthen its legality before regulators. However, the new attempt, named Diem, had the same fate as Libra. The problem, explains the leader of the protocol, is that the decision was made beforehand.
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
Is it possible that Facebook will revive the Libra project?
After the forceful rejection of Facebook’s Libra project by the authorities, it is unlikely that the firm will insist, at least in the short term. After the failure, all work was liquidated and much of its infrastructure was added to other projects such as the SUI network. Thus, if the technology giant wanted to return, it would have to do the work from scratch.
It is still unclear what the Donald Trump administration’s position would be on a new attempt similar to Libra. At that time, the authorities warned that the emergence of a stablecoin with these characteristics posed a threat to the dollar. It is worth mentioning that Facebook has a base of several billion users.
The latter means that much of the global e-retail trade would be cornered by a technology company. Thus, a dystopian reality could leave global financial control in the hands of a board of directors of shareholders, American politicians warned. Under this scenario, it would not be unusual for the Trump administration to also have its reservations.
Marcus points out that Facebook’s Libra project was designed with high-impact goals. In his opinion, it would have helped to largely prevent crimes such as money laundering, in addition to providing financial access for millions of unbanked people.
The former director of the stablecoin project highlights that by May 2021 Libra met all existing regulatory requirements. He even adds that he had the support of several Fed governors. However, Yellen’s pressure was stronger and politics ended up prevailing, he regrets.
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