Greenback to Make up Fifty Percent of Libra Reserve Currencies

The U.S. dollar will make up 50 percent of the currencies backing Facebook’s yet to be released Libra cryptocurrency. According to a German news magazine, <a href="https://www.spiegel.de/wirtschaft/facebook-will-kryptowaehrung-libra-nicht-an-yuan-koppeln-a-1287853.html">Der Spiegel</a>, the basket will comprise of the euro, yen, sterling pound and Singapore dollar. The magazine was referring to a letter from Facebook.

Particularly, the letter was a response to a request by Fabio De Masi, the finance spokesman of the Left Party faction of the German Bundestag.  The social media company revealed the traditional currencies that will make up the Libra Stablecoin reserves. As per Der Spiegel,  50% U.S. dollar, 18% euro, 14% Japanese yen, 11% British pound, and 7% Singapore dollar will make up Libra's basket of reserves.

However, the list excludes China's Yuan currency. The exclusion could help smooth the cryptocurrency’s planned path in the United States. Also, officials have raised concerns on Yuan’s growing reputation as a reserve currency; at a period when the two economic heavy weights are having a tense relationship.

In addition, it’s no secret that the Peoples Bank of China is developing a sovereign national cryptocurrency.  Due to this, it is unlikely for China to Force the inclusion of Yuan into Libra. Analysts have suggested the development of the <a href="https://www.ccn.com/china-cryptocurrency-yuan-libra/">central bank digital currency (CBDC</a>) might have been hurried in an effort to counter capital flight into Facebook's Libra.
<h2>Libra Scrutiny</h2>
In recent times, Facebook’s Libra project has received a strong wave of scrutiny from regulators in France and Germany. Recently, the German government passed a <a href="https://www.cryptoknowmics.com/crypto/blockchain-ing-the-world-decentralizing-developing-nations/">blockchain</a> strategy. This protects the country from parallel currencies.  This includes the Libra cryptocurrency.

In addition, France’s Minister of Economy and Finance, Bruno Le Maire; claimed the country will stop the development of the planned Facebook Libra cryptocurrency across Europe. The minister claimed the Stablecoin threatens the “monetary sovereignty” of governments.

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Greenback to Make up Fifty Percent of Libra Reserve Currencies

The U.S. dollar will make up 50 percent of the currencies backing Facebook’s yet to be released Libra cryptocurrency. According to a German... %

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

Greenback to Make up Fifty Percent of Libra Reserve Currencies

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