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 US dollar, while the rest will be split among the euro, the yen, the British pound and the Singapore dollar with 8 percent, 14 percent, 11 percent, and 7 percent respectively.
The revelation came in response to a request by Fabio De Masi, a German legislator and a former member of European Parliament.
Say no to yuan
Notably, the social media company will not include 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.
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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 Chinese yuan, Facebook is still facing roadblocks from regulators and lawmakers around the globe to launch Libra for an array of concerns.
Most recently, Franch Finance Minister spoke out against the crypto project, labeling it as a threat to “monetary sovereignty.” He also detailed that France will block Libra’s launch in Europe.
Germany also passed a strategy to push back 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.