- Facebook Excludes Chinese Yuan to Increase Its Chances of Dominating in the US
- Libra Has Been At the Center Of Controversy since Its Announcement
Libra Coin News Today – Facebook recently updated the crypto community on the percentage breakdown of the basket of currencies that its Libra Coin would be pegged with. During the initial announcement of the project, the firm revealed that 50% of the basket would be on the United States dollar (USD). According to a report by Der Spiegel, a German paper, on Friday, the remaining 50 percent would spread across the euro, Singapore dollar, the British pound, and the yen. According to the report, 18 percent would be on the euro, 14 percent for the yen, 11 percent for the British pound, and the remaining seven percent for the Singapore dollar.
Facebook Excludes Chinese Yuan to Increase Its Chances of Dominating in the US
After the announcement, it was noticeable that the Chinese Yuan – the currency of the second-largest economy in the world – was not in the basket. According to a report by Reuters, Facebook might have excluded the Chinese Yuan to increase the chances of Libra succeeding in the United Stated due to the concerns over the trade relationship between both countries.
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According to the report by Der Spiegel, Facebook revealed the percentage breakdown in a letter to a German legislator and former member of the European Parliament – Fabio De Masi. Masi is described as a “left-wing” politician that believes Facebook’s crypto is a threat to democracy, financial stability, and freedom. The German legislator was concerned that the digital currency will not be backed by deposit insurance. He was also afraid that Libra’s corporate sponsors might use information harvested from it.
Libra Has Been At the Center Of Controversy since Its Announcement
Libra Coin is a stablecoin that is designed to be backed by a basket of currencies to facilitate global settlements. A consortium led by the social media giant, Facebook, with members such as PayPal, Uber, and Visa, oversees the project. Since Facebook announced the project in June, Libra has been at the center of controversy. Regulators and lawmakers in the United States have raised concerns about the project. The finance minister of France even said that they will not allow Libra to function in the nation.
China even sees Libra Coin as a direct threat. The country is presently creating its own central bank cryptocurrency (CBDC) to counter the potential challenges Libra will bring on the table. However, the People’s Bank of China (PBoC) said that CBDC would be more like a payment system than a true digital currency.