The social media giants are currently in pursuit of regulatory approval for its Libra Stablecoin project. According to <a href="https://www.bnnbloomberg.ca/facebook-sees-libra-tied-to-dollar-euro-yen-but-maybe-not-yuan-1.1313459">reports,</a> the company shared details of the project’s proposed backing reserves,

As per reports, the giant tech company told United States senators; its initial basket of backing will include the Dollar, Euro, yen, British Pound and Singapore Dollar.

Moreover, the news was a response to the concerns by Virginia Democratic Senator Mark Warner; that china may force the Libra Association to include the Yuan into the Libra Stablecoin. China has encouraged foreign governments to include its currency into their reserve holdings according to Warner. He asked Facebook to commit on excluding Yuan from the Libra basket.

However, it would take the Libra Association to ultimately make such a determination rather than Facebook Inc. alone:

“Any decision whether to add a new currency to the Libra Reserve; would be made according to all the facts and circumstances at the time. Including any direct or indirect regulatory restrictions,” Facebook wrote.

In particular, Facebook and the Libra association have faced; intense hurdles from legislators and regulators on their plan to launch a cryptocurrency. Law makers intensely grilled Facebook’s David Marcus back in July at hearings before the Senate Banking and House Financial Services committees. This raised concerns on some of the company’s problems on privacy and data security made it unsuitable for the project.

Furthermore, unlike Bitcoin or Ethereum, the Libra will be reserve backing fund consisting of government issued currencies and debt instruments.  
<h2>In Conclusion</h2>
Responding to questions from Senator Warner, Facebook also left open the possibility of the Libra Association launching the cryptocurrency outside U.S. even if regulators in the U.S. still have concerns.

“We understand that the Libra Association will not offer the Libra digital currency in any jurisdiction until it has fully addressed <a href="https://www.cryptoknowmics.com/crypto/why-is-everyone-afraid-of-facebooks-crypto-coin-libra/">regulatory concerns</a> and received appropriate approvals in that jurisdiction,” the company wrote, adding that Facebook would adhere to U.S. regulatory requirements.

Facebook Libra Stablecoin Tied to Major Currencies, Maybe Not Tied to Yuan

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Facebook Libra Stablecoin Tied to Major Currencies, Maybe Not Tied to Yuan

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