The social media giant has finally revealed the number of fiat currency that will set to back its stablecoin, Libra. Accordingly, the Libra currency will be composed of US Dollar, Euro, Yen, Pound and Singapore Dollar.
It was unveiled via a report from German publication Der Spiegel on Sept 20, explaining that the Libra’s reserve will be comprised of 50% in USD, 18% EURO, 14% Japanese Yen, 11% British Pound, and 7% Singapore dollar. This is the first time that Facebook disclosed additional information regarding Libra. Looking at the classification, there seems a huge number of interested users in the United States.
As earlier Calibra head David Marcus revealed, for each Libra, there would be a unit of this currency basket – and the Libra Association based in Switzerland would govern the Libra administration.
However, on Sept 20, an interview of David Marcus with the Swiss newspaper NZZ unveiled that the team behind Libra development is dedicated to launching Libra in the first quarter of 2020 as announced earlier. Amidst regulatory hurdles which Libra is constantly facing, David Marcus said;
“The goal is still to launch Libra next year, until then, we’ll need to address all questions adequately, create a suitable regulatory environment.”
Although Facebook clarified its stance of launching Libra is to serve unbanked and underbanked, but the regulators are at their best to pour cold water on its plan. While authorities criticize Libra due to its possible effect to monetary sovereignty of the nation, the head of Calibra Marcus David in his series of the Twitter thread says;
Libra is designed to be a better payment network and system running on top of existing currencies, and delivering meaningful value to consumers all around the world., Mr.Marus explained. There’s no new money creation, which will strictly remain the province of sovereign Nations.
Having said that, he believed Libra would not interfere with monetary policy. However, he further outlined a different approach to Libra and the possible issue that it might encounter in near future. According to him, user acceptance would be a bigger problem than regulatory issues.
Image Source – Flickr
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