50% of Libra’s Fiat-Basket is USD Backed
Facebook recently revealed the breakdown of Libra cryptocurrency fiat basket; in other words, the percentage of different currencies with which it will back its soon-to-launch Libra digital coin. The media giant has decided that 50% of Libra’s supporting fiat basket will be covered by the USD that will be used to target the US market. Meanwhile, the other half will divided between the EUR, with 18%, 11% for the GBP, 7% for the SGP, and the JPY with 14%. The obvious missing suspect is the Chinese Yuan.
The decision to include any currency in Libra’s fiat basket was taken by the Libra Association which is a non-profit organization with the intent to promote the Libra cryptocurrency. The company’s main member is Facebook, and has 27 partners the likes of which are PayPal, Visa and MasterCard.
Nevertheless, Facebook’s new crypto ambition is still looked down upon by regulators and governments around the world. For instance, the Finance Minister of France has spoken against it by stating that it is a threat to the “monetary sovereignty”, furthering that France will block Libra upon its launch. Similarly, Germany has taken action against Libra by passing a strategy to push it back.
Meanwhile on the other side of the globe, China is in the process of developing its own digital currency, with the considerable difference that theirs will be centralized, thus the Chinese central bank will have total control over it.
This latest development can bring about the beginning of yet another conflict of interest between the US and China, who are currently amid in an escalating trade war between.