Social media giant Facebook has revealed the percentage breakdown of various cryptocurrencies with which it is planning to back its upcoming digital currency Libra.
According to the German newspaper Der Spiegel, 50 percent of Libra’s supporting fiat basket will consist of the US dollar, while the rest will be split among the euro, yen, British pound, and the Singapore dollar with eight percent, 14 percent, 11 percent, and seven percent respectively.
The revelation came in response to a request by Fabio De Masi, a German legislator and a former member of the European Parliament.
Say no to yuan
Notably, the social media company will not include the Chinese yuan in its basket with which it is targeting easy access to the US market amid an escalating trade war between the US and China.
Did COVID-19 Save the Forex Industry?Go to article >>
Earlier, in response to concerns of a US senator, Facebook revealed that the decision to include any currency to Libra’s fiat basket is completely under the Libra Association, a non-profit with members including Facebook and its 27 partners like Uber, Paypal, Visa, and MasterCard.
Despite the non-inclusion of the Chinese yuan, Facebook is still facing roadblocks from regulators and lawmakers around the globe to launch Libra due to an array of concerns.
Most recently, the French Finance Minister spoke out against the crypto project, labeling it as a threat to “monetary sovereignty.” He also detailed that France would block Libra’s launch in Europe.
Germany also passed a strategy to push back against Libra or any other establishment from creating a parallel currency in Europe.
Meanwhile, the Chinese Central Bank is also developing a digital currency to tap into the newly created digital currency market. One of the executives of the bank revealed that the structure of the currency is almost similar to Libra; however, it will be much centralized as the central bank will have total control over it.