Facebook Reveals Percentage Breakdown of its Libra Cryptocurrency

According to German newspaper Der Spiegel, Facebook has revealed the percentage breakdown of its Libra cryptocurrency. Libra is a cryptocurrency backed by a basket of fiat currencies. While it is known that 50% of the Libra basket will be backed by the US Dollar, the report stated that the remaining portion will be backed by Euro, Yen, British Pound and Singapore Dollars with 18%,14%, 11% and 7% respectively.

The notable omission is, of course, the Chinese Yuan – the legal tender of the second biggest global economy China. Reports suggest that the existing trade tensions between the US and China may have been the reason behind the exclusion.

Facebook revealed the breakdown in a letter to German legislator Fabio De Masi. He has been one of the vocal critics of Libra stating that the digital asset is a threat to democracy, freedom and financial stability.

Libra is governed by a consortium called the Libra Association which consists of big names such as PayPal, Visa and Uber. Ever since the announcement of Libra, Facebook has been under fire from regulators in the US and Europe. Even China has begun developing its own Central Bank Digital Currency in response to Libra. India has also stated that it is not comfortable with Libra.

 

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