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Libra Stablecoin of Facebook adds Singapore dollar

Libra Stablecoin of Facebook added Singapore dollar while showing concern on which fiat currencies needs to be added into its crypto basket.

A report published by Bloomberg stated that Facebook wrote a letter to US senators addressing concerns on Chinese influence on cryptocurrency.

US Senator Mark Warner wrote to Facebook to exclude yuan, the Chinese currency from the libra basket.

“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,” Facebook reportedly wrote, adding that the decision would be made by the Libra Association, not Facebook itself.

The report listed out possible currencies to be included in Libra. However, an outright exclusion for the Chinese currency, yuan was mentioned for Libra.

US Dollar, Euro, Japanese Yen, British pound are included in the letter.

David Marcus, blockchain lead of Facebook mentions around 50 percent basket will be backed by US dollars while the remaining half would be backed by “stable sovereign countries”.

Facebook mentioned that Libra would create two tokens. Fiat stable coins and a security token that members of Libra’s governing council could use to supervise the network.

Controversial Facebook’s Libra

However, it raised criticisms from US Regulators as well as other jurisdictions blocking the release until Facebook doesn’t answer lawmakers’ question.

David Marcus testified before the House Financial Services and Senate Banking committees to convince that Libra Stablecoin would not destabilize the global monetary system.

Meanwhile, Facebook took a pledge stating that it would halt its launch unless its regulatory bodies are not satisfied. Although it would continue in developing the project.



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