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Facebook reportedly revealed the percentage distribution of a basket of world currencies on which its Libra cryptocurrency will rest.
Although it is already known 50% of the basket will be denominated in US dollars, said the German newspaper Der Spiegel in a statement. report On Friday, the remaining portion will be made up of the euro, yen, pound sterling and the Singapore dollar, with respectively 18%, 14%, 11% and 7%.
The basket will not include the Chinese yuan, the legal supply of the world's second largest economy. A report Reuters suggested excluding the Chinese yuan could help with the Libra plan in the US given concerns over tense trade relations between the two countries
The German newspaper said that Facebook revealed this percentage distribution in a letter to Fabio De Masi, a German legislator and former member of the European Parliament.
The newspaper describes him as a "leftist" politician who believes that Libra is a threat to democracy, freedom and financial stability. He is particularly concerned that Libra will not be protected by deposit insurance and that corporate sponsors of the coin could use the information gathered through its use, according to Der Spiegel.
Libra, a stable currency destined to facilitate worldwide payment and governed by a consortium led by Facebook and including members such as Visa, Uber and PayPal, has been at the center of controversy since Facebook announced the June plan.
US regulators and regulators have raised Concerns about the initiative, while the French Minister of Finance m said the nation plans to block Libra. A member of the board of the European Central Bank has also warned of the threat posed by Libya in a recent report. Risks were cited in addition to concerns about the possible loss of economic sovereignty and the control of monetary policy.
China sees the currency as a direct threat and is developing its own central bank digital currency (CBDC) for challenge by Libra, although the structure proposed by the People's Bank of China (PBoC) suggests more a glorified payment system than a real cryptocurrency.
Some members of the Libra Association, as the consortium calls it, can exit the group because of the controversy, but most insist on staying.
David Marcus image via House Financial Services Committee
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