Libra’s currency basket will be in US Dollar, Euro, Yen, Pound Sterling and Singapore Dollar.
Many politicians or governments feared that Facebook would include the Chinese Yuan in its basket of currencies to back the cryptocurrency Libra that Facebook intends to launch in 2020.
In order to silence the rumors, Libra has revealed the currencies that will make up the basket of currencies behind Facebook’s cryptocurrency.
The reserve basket will consist of 50% US Dollars, 18% Euros, 14% Japanese Yen, 11% British Pounds and 7% Singapore Dollars.
This is what reveals the serious German newspaper Der Spiegel.
The Facebook cryptocurrency is not welcome by many governments, France even declared that it does not want Libra on European soil.
This basket of currencies in billions of dollars must make it possible to cover any request from a person who would like to convert his Libra tokens in a fiduciary currency.
The launch of the cryptocurrency Libra scares many governments because of the number of users Facebook has, billions, and who would be exposed to this new alternative currency.
The risk is that the population switches to this cryptocurrency and no longer uses the national currency.
Some governments see this as a danger for their national currency and for the international financial system as a whole.
This explains in particular the recent statements of the French Minister of the Economy Bruno Le Maire who proposed to other governments to create a public cryptocurrency to cope with the arrival of Libra.
Libra’s team is currently meeting with many regulators to reassure governments of Libra’s real intentions which is not to replace national currencies, Libra’s managing director said.
