Former Facebook executive: Stablecoin projects Libra/Diem became victims of "political murder"

Former Facebook executive David Marcus revealed that the company's stablecoin and blockchain project (originally called Libra and later renamed Diem) eventually came to an end, causing many employees to leave and switch to other blockchain projects. The project was sold to Silvergate Bank in January 2022, which abandoned the project and wrote off its investment a year later. According to David Marcus, the former head of the project and former Coinbase board member, behind-the-scenes political intrigue was the reason for the project's failure. In a long post on X, he said, "There is no legal or regulatory angle for the government or regulators to kill the project. This is 100% political murder-executed by intimidating captive banking institutions." Marcus said that despite "...two years of non-stop work and changes to appease lawmakers and regulators" and limited support from some members of the Federal Reserve Board, including Chairman Powell, the political prospects of the project still face strong resistance from Treasury Secretary Yellen, who warned Powell not to let the project go forward in a biweekly meeting. Marcus called Yellen’s public opposition the death knell for the project, writing: “… in reality, this was the moment Libra was killed.” (The Block)