Official announcements from the U.S. Federal Reserve or relevant government agencies

Libra Project Terminated by U.S. Regulators Under Yellen and Powell's Influence

Nov 30, 2024, 02:48 AM

The Libra project, initially launched by Meta (formerly known as Facebook) as a blockchain-powered stablecoin aimed at revolutionizing global payments, was ultimately terminated due to political pressure from U.S. regulators. According to David Marcus, who was involved with the project, the fatal blow came when Treasury Secretary Janet Yellen instructed Federal Reserve Chair Jerome Powell to halt the initiative. Despite extensive regulatory preparation and addressing all concerns by 2021, Libra was seen as a threat to the financial status quo, leading to its demise. The project was described as fully compliant with the law, yet it was targeted with ambiguous regulations and political interference, which ultimately led to its cancellation. The Federal Reserve expressed discomfort with the project, and companies like Gemini were closely involved in its development.