Facebook has apparently revealed information on the cryptocurrency – Libra’s, basket breakdown.
It is common knowledge that about half of the basket will consist of the US dollar. As per German news daily, Der Spiegel’s report on Friday, the rest will consist of the yen, the British pound, the Singapore dollar and the euro. The stakes will be 14 percent, 11 percent, 7 percent, and 18 percent respectively.
The basket of global cryptocurrencies will not include the Yuan, the official tender of the world’s second-largest economy – China. Reuters brought out a report discussing how this might actually be beneficial for Libra in the US, given the fraught relations between the two global superpowers.
Facebook reportedly charted the percentage breakdown in a letter to German legislator and former member of European Parliament, Fabio de Masi, as per the report published in Der Spiegel. The newspaper described Masi as a left-winger who believes Libra to be a threat to democracy, financial stability, and freedom.
The German is particularly concerned that the cryptocurrency won’t be supported by deposit insurance due to the possibility that corporate sponsors of the coin could tap into the information harvested from its use.
The stablecoin has been designed to anchor to a basket of currencies which will facilitate global payments. Libra is governed by a consortium headed by Facebook, which includes Visa, Uber, and PayPal among its members. It has also been the topic of controversy ever since its launch announcement in June.
It has been on the receiving end of critique across the world. While lawmakers and regulatory heads have raised concerns around it, the French finance minister has said that it could face a ban in their country. Even a member of the European Central Bank has issued a warning against the threat the crypto-asset holds in a recent report.
The risks commonly expressed, have to do with the probable loss of economic sovereignty and control over financial policy. China happens to be in the process of developing its own cryptocurrency to rival Libra.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.