Facebook has reportedly uncovered the percentage breakdown of a basket of global currencies that will support Libra's cryptocurrency.
It is already known that 50 percent of the basket will be denominated in the US dollar The German newspaper Der Spiegel said on Friday in a report that the remaining part of the euro, the yen 18%, 14%, 11% and 7% of the British Pound and Singapore Dollar
The basket does not include the Chinese yuan, the legal tender of the world's second largest economy. A report from Reuters suggested that the exclusion of the Chinese yuan in the face of concern over the tense trade relations between the two countries could support Libra's plan in the US letter to Fabio De Masi, a German legislator and former Member of the European Parliament.
The newspaper describes him as a "leftist" politician who believes the Libra poses a threat to democracy, freedom and financial stability. He is particularly worried that the balance will not be secured by a deposit guarantee and the sponsors of the coin could use information derived from their use, according to Der Spiegel.
Libra, a stable coin designed to anchor itself in a basket of currencies The Facebook-led consortium of members such as Visa, Uber and PayPal has been controversial since Facebook announced its plan in June.
Legislators and regulators in the US have expressed concerns over the initiative while the French Finance Minister even said the country plans to block the Libra. A board member of the European Central Bank also warned in a recent report against the threat of Libra. In addition to concern about the possible loss of economic sovereignty and control over monetary policy, risks have been cited.
China sees the currency as a direct threat and develops its own digital central bank currency (CBDC) to challenge the challenge although the structure proposed by the Bank of China (PBoC) is more of a glorified payment system suggests a true cryptocurrency.
Some members of the Libra Association, as the consortium is known, could [1
David Marcus Image via House Financial Services Committee