Facebook has revealed more details about its controversial cryptocurrency project, unveiling which currencies will be used to back it.
In a letter to German politician Fabio de Masi, Facebook said that half of the Libra cryptocurrency would be backed by reserves of US dollars, while the euro, Japanese yen, British pound and Singapore dollar would also provide support.
Backing Libra with traditional currencies is designed to help solve the problem of price volatility, which continues to plague cryptocurrencies like bitcoin.
But notably absent from the basket of support currencies is the Chinese yuan – the currency of the world’s second largest economy.
This may be a strategic decision by Facebook, who may hope that leaving out the yuan will help appease US regulators critical of Chinese economic and trade policy. Read More...