{"id":42477,"date":"2024-12-02T06:57:04","date_gmt":"2024-12-02T06:57:04","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/political-pressure-ended-metas-diem-project-says-co-creator\/"},"modified":"2024-12-02T06:57:04","modified_gmt":"2024-12-02T06:57:04","slug":"political-pressure-ended-metas-diem-project-says-co-creator","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/political-pressure-ended-metas-diem-project-says-co-creator\/","title":{"rendered":"Political Pressure Ended Meta\u2019s Diem Project, Says Co-Creator"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Meta\u2019s ambitious blockchain payment initiative, Diem, ultimately collapsed due to intense political opposition, according to its co-creator David Marcus. In a candid Nov. 30 post on X, Marcus revealed that the project was not shut down due to regulatory violations but as a result of political resistance.<\/p>\n

\u201cThere was no legal or regulatory angle left for the government or regulators to kill the project. It was 100% a political kill\u2014one that was executed through intimidation of captive banking institutions,\u201d<\/em> he stated.<\/p>\n

Diem, initially branded as Libra, was introduced in June 2019. Backed by industry heavyweights like Visa and PayPal, the project aimed to establish a decentralized payment system anchored by a US dollar-backed stablecoin.<\/p>\n

Regulatory Hurdles and Political Roadblocks<\/strong><\/h2>\n

Marcus recounted how scrutiny intensified just two weeks after Diem\u2019s launch, with Senate and House committee testimonies signaling the start of relentless regulatory pressure. The project addressed concerns related to money laundering and consumer protection, even garnering tentative support from Federal Reserve Chair Jerome Powell.<\/p>\n

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However, Marcus claimed that Treasury Secretary Janet Yellen opposed the initiative, warning Powell that allowing Diem to proceed would be \u201cpolitical suicide.\u201d Adding to the challenges, the Federal Reserve discouraged participating banks, citing discomfort with the project.<\/p>\n

Meta officially abandoned Diem in early 2022, selling its assets to Silvergate Capital<\/a>, which later faced bankruptcy in September 2023.<\/p>\n

Reflecting on the experience, Marcus, now CEO of Lightspark, emphasized the need for resilience when building decentralized financial networks. \u201cIf you\u2019re trying to build an open money grid for the world\u2014eventually moving trillions of dollars a day, designed to be here 100 years from now\u2014you have to build it on the most neutral, decentralized, unassailable network and asset,\u201d<\/em> he said, adding, \u201chands down, Bitcoin.\u201d<\/em><\/p>\n<\/p><\/div>\n

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(Originally posted on : Crypto News – iGaming.org ) Meta\u2019s ambitious blockchain payment initiative, Diem, ultimately collapsed due to intense political opposition, according to its co-creator David Marcus. In a candid Nov. 30 post on X, Marcus revealed that the project was not shut down due to regulatory violations but as a result of political […]<\/p>\n","protected":false},"author":35,"featured_media":42478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/42477"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=42477"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/42477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/42478"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=42477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=42477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=42477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}