David Marcus, who co-founded the Diem (formerly Libra) stablecoin project while at Facebook, today spoke passionately about its demise, warning against mixing politics and regulation. Diem’s assets were sold to Silvergate Bank in January after regulators made it clear it would not get the go-ahead.
“It was killed for political reasons, just to call a cat a cat,” said Marcus during the Point Zero Forum. “There was a really solid construct for a stablecoin that could not fail consumers, that was really properly backed, properly regulated.”
A key trigger of the latest cryptocurrency crash was the collapse of the algorithmic stablecoin Terra and its associated cryptocurrency Luna. The question is whether consumers would have speculated on Terra if there were already a stablecoin like Diem backed by Meta, Shopify, Spotify, Uber, and others.
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