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How Libra Was Killed.
I never shared this publicly before, but since @pmarca opened the floodgates on @joerogan’s pod, it feels appropriate to shed more light on this.
As a reminder, Libra (then Diem) was an advanced, high-performance, payments-centric blockchain paired with a stablecoin that we built with my team at @Meta. It would’ve solved global payments at scale. Prior to announcing the project, we spent months briefing key regulators in DC and abroad. We then announced the project in June 2019 alongside 28 companies. Two weeks later, I was called to testify in front of both the Senate Banking Committee and the House Financial Services Committee, which was the starting point of two years of nonstop work and changes to appease lawmakers and regulators.
By spring of 2021 (yes they slow played us at every step), we had addressed every last possible regulatory concern across financial crime, money laundering, consumer protection, reserve management, buffers, and so much more, and we were ready to launch.
We had worked on a slow rollout of a limited pilot that some members of the Fed’s Board of Governors were supportive of. At last, Chair Jay Powell was ready to let us move forward in a limited way. The story, as I heard it, is that Jay Powell was told by Treasury Secretary Janet Yellen at one of their biweekly meetings that allowing this project to move forward was “political suicide,” and she would not have his back if he let it happen. I wasn’t in the room when this conversation happened, so take these words with a grain of salt, but effectively this was the moment Libra was killed.
Shortly thereafter, the Fed organized calls with all the participating banks, and the Fed’s general counsel read a prepared statement to each of them, saying: “We can’t stop you from moving forward and launching, but we are not comfortable with you doing so.” And just like that, it was over.
One essential point is worth making here. There was no legal or regulatory angle left for the government or regulators to kill the project. It was 100% a political kill—one that was executed through intimidation of captive banking institutions. That was the hardest part of this story for me personally. Not that we had failed, but that America, this country I immigrated to and became a proud citizen of because of its rule of law and value system, behaved in such a way for political reasons. It was a very tough pill to swallow.
The bright side of the story, though, was the many learnings from this wild ride. By the end of the project, we had made so many concessions to get a thumbs-up that the whole design of the network became a Frankenstein of our initial ambitions.
We also learned the biggest lesson of all, which is that if you’re trying to build an open money grid for the world—eventually moving trillions of dollars a day, designed to be here 100 years from now—you have to build it on the most neutral, decentralized, unassailable network and asset, which, hands down, is Bitcoin.
And now this is what many of us who went through this scarring journey are building together at @Lightspark. And this time, we won’t stop until we get it done!
Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6
⚠️ EM MEIO A MAIOR CATÁSTROFE AMBIENTAL DA HISTÓRIA DESSE PAÍS O GOVERNO TÁ PREOCUPADO EM CENSURAR O CIDADÃO COMUM E DAR DINHEIRO PRA #GLOBOLIXO#PLdaGloboNÃO
⚠️ Civis improvisando uma ponte. Vocês tem ideia do PERIGO disso? O correto é aguardar o governo realizar uma licitação pública e após esse processo começar a obra. Que todos os envolvidos nesse CRIME que ameaça a democracia sejam incluídos no inquérito das fake news.
A imprensa deveria sempre questionar o governo. De qualquer partido ou ideologia.
Quando vemos ela questionando o povo e protegendo o governo do questionamento do povo, parece-me que inverteram os valores.
Neste vídeo podemos ver o impacto do grande volume de chuva que atingiu o Rio Grande do Sul entre o final de abril e início de maio.
Vidas foram perdidas e milhares de pessoas perderam suas casas e seus pertences na maior enchente da história do estado.
330 mil pessoas estão desalojadas sendo 70 mil em abrigos e 431 municípios foram impactados.
In this video we can see the impact of the large volume of rain that hit Rio Grande do Sul between the end of April and the beginning of May.
Lives were lost and thousands of people lost their homes and belongings in the biggest flood in the state's history.
330 thousand people are homeless, 70 thousand in shelters and 431 municipalities were impacted.
Quando algum fdp vier te falar que não é a sociedade civil, o próprio povo quem tá resgatando os afetados pela tragédia, MOSTRE ESSE VÍDEO!
Eu poderia fazer um vídeo de horas mostrando cada brasileiro que arriscou ou perdeu sua vida tentando salvar outra.
Infelizmente, a canalhice impera e essas pessoas viram os rostos diante de tudo que está acontecendo…
Tudo por dinheiro e poder…
Canalhas!
Ultimately, the reason I find #Bitcoin to be so fascinating is simple:
If the experiment is succesful, it undermines the parasitic practice of unbacked credit creation & usury; tools used to completely control the populace & siphon the fruits of their labor in perpetuity.