Former head of Meta's stablecoin project Diem: Political interference is the reason for the project's failure

ChainCatcher news, according to DL News, David Marcus, the former head of Meta's (formerly Facebook) stablecoin project Diem, revealed new details about the project's failure. He claimed that political interference was the reason for the project's failure, rather than non-compliance with regulatory requirements.

Marcus stated that by 2021, the project was fully compliant with regulatory requirements and ready for a small-scale launch, but U.S. Treasury Secretary Janet Yellen told Federal Reserve Chairman Powell that approving the project would be "political suicide." Shortly thereafter, the Federal Reserve pressured banks to withdraw. Custodia Bank CEO Caitlin Long stated that her company also faced similar targeting, saying, "One day… I will be able to tell the true story of what the Federal Reserve did to Custodia Bank." She added, "There is too much corruption."

Previous report, a16z founder Marc Andreessen revealed that 30 tech founders had their accounts revoked by banks solely due to their association with digital currencies.