March 4, 2024

What currency basket will provide cryptocurrency Libra

What currency basket will provide cryptocurrency Libra

The Libra stablecoin being developed by Facebook will be backed by five national currencies, reports the GermanDer Spiegel Edition.

In response to a request from a representative of the Left PartyFabio de Masi company provided detailed information on Libra reserves. The currency basket will consist of 50% of US dollars, 18% of the euro, 14% of the Japanese yen, 11% of British pounds and 7% of Singapore dollars.

The head of the blockchain division of Facebook, David Marcus, confirmed on Friday that despite active opposition to regulators, the company still expects to launch Libra in 2020.

“Until this time, we need to properly answer all available questions and create an acceptable regulatory environment”, - he said.

Marcus also noted that Libra is unlikely to becomemeans of payment in countries such as Switzerland, Germany and France, but will be used for international transfers or very small settlements. In his opinion, at the first stage, attracting users to stablecoin will be an even bigger problem than complying with all existing regulations.

Facebook manager claims Libra will not havedestabilizing effect on the global financial system and will not affect the currency policy pursued by central banks, as it will not be used to issue new money supply. The Calibra cryptocurrency wallet will be available wherever regulatory conditions prevent this, he added.