Social media giant Facebook, which is currently trying to get regulatory approval for its Libra stablecoin project, reportedly shared details regarding the project’s proposed backing reserves.
According to a report by Bloomberg on Sept. 9, Facebook told United States senators about the backing reserves for the stablecoin — a type of cryptocurrency valued by a reserve currency, commodity or algorithm.
Libra is backed by major national currencies
Libra will reportedly be backed by several national currencies. These include the U.S. dollar, euro, Japanese yen, British pound and Singapore dollar. However, the Chinese yuan may be excluded from the group of reserve assets, according to Bloomberg.
Facebook reportedly produced the list of its backing assets as a result of an inquiry by Virginia Democratic Senator Mark Warner. The senator stated that China has been encouraging other governments to include its currency in their foreign currency reserve holdings.
In its turn, Facebook purportedly responded by saying that any final determination regarding the backing currencies is the purview of the Libra Association — a consortium of various companies and interested parties that will oversee the Libra’s eventual development. Facebook stated:
“We understand that the Libra Association will not offer the Libra digital currency in any jurisdiction until it has fully addressed regulatory concerns and received appropriate approvals in that jurisdiction.” Read More at CoinTelegraph..