David Marcus, former president of PayPal and head of Meta’s ill-fated crypto project Libra, has broken his silence about the political machinations that killed what he described as a transformative global payments initiative.
Marcus’ revelations come in the wake of venture capitalist Marc Andreessen’s discussion of Libra on the Joe Rogan Experience, prompting him to shed light on what transpired behind the scenes.
Launched with high ambitions in June 2019, Libra aimed to create a blockchain-based, stablecoin-powered global payments system that could tackle inefficiencies in cross-border payments. Backed by 28 companies at launch, the project faced immediate scrutiny, with Marcus testifying before the Senate Banking Committee and the House Financial Services Committee just weeks after its announcement.
Marcus said the two years following Libra’s unveiling were marked by an exhaustive effort to address regulatory concerns related to financial crime, money laundering, and consumer protection. By early 2021, Marcus claimed, Libra (later renamed Diem) had secured a green light from some members of the Federal Reserve’s Board of Governors for a limited pilot rollout.
Janet Yellen Allegedly Warned Fed Chair Supporting Libra Would be “Political Suicide”
Marcus in an X post alleges that Treasury Secretary Janet Yellen intervened at a critical juncture, warning Federal Reserve Chair Jerome Powell that supporting Libra’s launch would amount to “political suicide.” Although not directly confirmed, Marcus cited this alleged exchange as the moment the project was effectively doomed. Shortly afterward, the Federal Reserve reportedly issued a veiled warning to banks participating in Libra, discouraging them from moving forward.
Marcus characterized Libra’s demise as a politically motivated move rather than one grounded in regulatory or legal concerns, calling it “a tough pill to swallow” given his faith in America’s rule of law.
Reflecting on the project’s collapse, Marcus highlighted lessons learned, emphasizing the need for future initiatives to be built on decentralized and neutral networks like Bitcoin. “If you’re trying to build an open money grid for the world,” Marcus wrote, “you have to build it on the most unassailable network and asset.”
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