The hosts discuss Facebook's unsuccessful attempt to create a stablecoin and the reasons behind its failure, including government intervention and banking lobby influence. They also explore the challenges faced by Western banking systems in terms of innovation and the potential future of the money layer on the internet built on crypto, particularly Bitcoin.
David Marcus started a company that was acquired by PayPal, he then became President of PayPal (running the company), then he joined Facebook as VP of the Messenger app, and that’s when he started Facebook’s Libra project. Currently, he’s the CEO and Co-founder of Lightspark, a company that builds out Bitcoin Lightning tech.
------ ✨ DEBRIEF | Ryan & David unpacking the episode: https://www.bankless.com/debrief-david-marcus
----- From whitepaper to being summoned in front of Congress in 3 weeks…what really happened to Facebook’s stablecoin endeavors and what can we learn from it?
This episode is a post-mortem of Facebook’s highly ambitious crypto project from 2019. They tried to build a stablecoin but the U.S. government stopped it.
Topics covered in today’s episode: 1) Facebook’s Libra project…why did it fail? Who tanked it? The U.S. gov? The banking lobby? Why can’t the West seem to innovate its banking systems? 2) Why SuperApps won’t work? 3) Why our David Marcus thinks the money layer of the internet will be built on crypto…but more specifically…on Bitcoin!
----- TIMESTAMPS
0:00 Intro 7:20 The Libra Project 9:10 Facebook’s Involvement 9:59 Super App Thesis 12:05 Getting Government Approval 14:39 Messaging & Payments Intersection 16:45 Releasing the White Paper 18:05 Libra’s Government Reaction 19:50 Summoned to Congress Experience 21:25 U.S. Crypto Competition 25:40 Government Money Power Structure 30:00 FedNow 42:40 Will Twitter/X Become a Super App? 48:18 Bear Case for Super App 51:42 Lightspark 54:35 Bitcoin vs. Stablecoins 58:15 Why Lightning Uses Bitcoin 1:06:25 Bitcoin vs. Ethereum 1:11:37 The Future in 5-10 Years 1:14:40 Closing & Disclaimers
----- RESOURCES
David Marcus https://twitter.com/davidmarcus
Lightspark https://twitter.com/Lightspark
----- Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures
