Wednesday, January 20, 2021

Facebook reveals the breakdown of fiat currencies which would back Libra

The Takeaway:

Facebook, in a letter to German legislator, revealed the breakdown of fiat currencies which would back Libra. Facebook earlier announced that Libra would be backed by different fiat currencies at 1:1. The currencies include the US dollar, Euro, Yen, Sterling, and Singapore dollar.

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Facebook earlier announced that Libra stablecoin would be backed by a basket of fiat currencies at 1:1. 50% of which would be on the US dollar. The German newspaper Der Spiegel reported that Facebook revealed the other 50% currency breakdown in a letter to Fabio De Masi, a German legislator and a former member of the European parliament.

The other 50% currency basket includes the Euro, the yen, the British pound, and the Singapore dollar with 18, 14, 11 and 7 percent, respectively. The Chinese currency Yuan is not included in the other 50% of the currency basket. This could be because of the relations between the US and China, and this could help Libra with regulators in the United States. 

Officials from Facebook or Libra Association has not made any official announcement yet. Since Facebook announced the plan to launch Libra next year, regulators from all around the world have shown concern. Last week French finance minister said they would not authorize the development of the Libra on the European soil. 

David Marcus, Facebook executive and head of Calibra recently took to twitter to debunk some notions surrounding Libra. Earlier, Marcus promised to US senate that they would not go ahead with the project without meeting all the regulatory requirements. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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