Facebook to Back Libra with Major Fiats, Might Exclude Chinese Yuan

Facebook and it’s Libra Association partners are planning to initially back Libra with fiats including US dollars, euro, yen, British pound, and Singapore dollar, Bloomberg reported on Tuesday.
The social media giant revealed this in response to concerns raised by Senator Mark Warner (D-Virginia) for China’s attempts to push the to include yuan in the basket of the currencies backing Libra.

Citing China’s push to several governments to include its fiat in their reserves, Senator Warner wanted Facebook to commit that the company will not back Libra with yuan.
The California-headquartered company, however, made it clear it is not capable of making decisions like this as the Libra Association will solely responsible for anything related to the upcoming digital currency.
“Any decision whether to add a new currency to the Libra Reserve would be made based on all the facts and circumstances at the time, including any direct or indirect regulatory restrictions,” the social media company noted.
Setbacks and influences
Since Facebook’s announcement to introduce Libra, the company is facing around the world. After two hearings in the United States in front of lawmakers, the company is now facing antitrust investigation by the European Commission for its unfair advantage with Libra in the payments industry.
It also is trying to fight back the resistance among the US lawmakers for Libra and is on a to influence blockchain policymaking in Washington.
Facebook set up the Libra Association in Switzerland and made it clear that the digital currency will be regulated under Swiss laws. Fortunately, unlike the global counterparts, the Swiss regulators are not hostile towards Libra.
“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,” the company added.

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