Diem Project's Challenges Revealed By Former Head

According to Odaily, David Marcus, the former head of Meta's stablecoin project Diem, has disclosed the reasons behind the project's failure. Marcus revealed that by 2021, Diem had fully complied with regulatory requirements and was ready for a limited launch. However, U.S. Treasury Secretary Janet Yellen reportedly told Federal Reserve Chairman Jerome Powell that approving the project would be 'political suicide.' Following this, the Federal Reserve exerted pressure on banks, leading them to sever ties with the project. Caitlin Long, CEO of Custodia Bank, responded to these revelations by stating that her company faced similar pressures. This aligns with previous reports where Marc Andreessen, founder of a16z, mentioned on a podcast that over 30 tech founders have experienced 'debanking' in the past four years. These insights shed light on the challenges faced by tech companies in navigating regulatory landscapes and maintaining banking relationships, highlighting the broader issues within the financial and technological sectors.