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Facebook reveals how to back Libra

Facebook cryptocurrency, Libra, has not had exactly a good start

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In France and Germany they said they would block Libra altogether, since they believe that no private entity should try to claim monetary power.

But the company (and its Libra partners, who have mostly remained silent since launch) keep going.

A week ago, the Chief of Calibra (the wallet for Libra) David Marcus turned to Twitter to discredit the idea that Libra threatens the monetary sovereignty of nations.

And on Friday

German media Der Spiegel revealed (via Reuters) that Libra would be backed by a basket of currencies consisting of the US dollar, the euro, the Japanese yen, the British pound and the Singapore dollar.

In particular, the Chinese yuan is absent, which addresses the concerns of some American politicians who fear that the yuan is becoming too strong a reserve currency.

Pound

It is based on a blockchain platform of the same name, it is a special type of currency called stable currency. Usually, they are backed by real-world assets and designed in such a way that their value remains stable compared to those assets.

In the particular case of Libra, the stable currency will be backed by fiat currency and short-term government bonds.

The breakdown of Libra's support currencies, which supposedly comes from a Facebook letter sent to the German politician Fabio De Masi, is as follows: 50% of the US dollar, 18% of the euro, 14% of the Japanese yen, 11% of British pound and 7% of Singapore dollar.

The news could calm some skeptics in China

But it is unlikely to fully satisfy European politicians, some of whom seem to be against the very idea of ​​Libra.

Meanwhile, Facebook has stood firm on its intention to fully comply with regulators' demands before launching Libra.

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