Facebook’s Libra Will Be Backed By Multiple Fiats Except Yuan

Even though Facebook faced a lot of backlash about its earlier announced Libra, the company is still going forward with its plans. According to reports, Facebook has written to the U.S. Congress and has specifically said that the Libra will be fully backed by a few currencies including the U.S. Dollar, the Singapore Dollar, Euro, Yen and the British Pound. Facebook however did not add the Yuan.

Before now, Sen. Mark Warner had written to Facebook and had expressed certain concerns about control from China, especially considering the fact that its relationship with the U.S. isn’t very cordial at the moment. Facebook then seemed to assure that the decision to choose the currencies that will back the Libra will be made by the Libra Association with all possible considerations.

“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 omission of the Chinese Yuan could mean that Facebook will not be adding it to the currencies backing the Libra. Facebook has however not expressly stated this. The company has also promised that it will keep working on the Libra but will not officially launch the currency anywhere until proper approval has been sought and acquired.

“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 head of the Libra project, David Marcus, faced hours of grilling with the U.S. Congress shortly after Facebook announced the Libra because of several security and privacy issues the social media giant has been plagued with for a long time.

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