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Facebook has finally released the full list of the fiat currencies which will back Libra. While it may not come as much of a surprise, what remains yet to be seen is how France and Germany will be encouraged to accept Libra.
Social media giant Facebook has for the first time indicated the full list of the basket of currencies which will support the proposed stablecoin Libra. While is known publicly that the US Dollar accounts for about 50% of the basket of currencies that will back the cryptocurrency, not much was known about the rest.
According to the Der Spiegel report , in response to a request from Fabio De Masi who is the finance spokesperson of the Left Party of the German Parliament (the Bundestag), a former member of the European Union Parliament and Cryptocurrency skeptic requested for full details from Facebook and they obliged him.
According to them, while approximately half of each Libra coin will derive half of its value from the US Dollar, Euro dominated bonds shall have 30% stakeholding in the basket of currencies. Euro (18%), Yen (14%), the British Pound (11%) and Singapore dollar (7%) make up the rest.
The Chinese are Left Out of the Party
Confirming the truth to the rumors that the Chinese may be excluded from Libra due to the current trade tensions between the Americans and the Chinese, the Yuan has been left out of the basket of currencies.
This, of course, indicates that the Chinese may not be allowed to use Facebook’s Libra. The Chinese, on the other hand, who are about 25% of the World’s population and the second-largest economy in the world has already given indications that they are setting up a cryptocurrency of their own later this year.
While details are sketchy at best, the Chinese have indicated that it would be a national cryptocurrency which will have an offshore component as well.
France and Germany Love Blockchain Technology but Hate Libra
Two of the leading members of the European Union have already indicated plans on blocking Facebook’s Libra. Other cryptocurrencies such as Bitcoin and distributed ledger technologies such as blockchain technologies are receiving quite the right amount of affection from both Countries but Facebook, however, is receiving hard knocks from both Countries who have both threatened to boycott Libra.
Already, 26 officials from global central banks as well as the Bank of England and the U.S. Federal Reserve, indicated their intention to meet to discuss on the issue of Facebook’s Libra, both France and Germany both indicated to implement a public blockchain that shall rival the yet-to-be-launched cryptocurrency.
Many Libra Consortium Members Remain Unfazed while Others Exit
Many members of the Libra association are already indicating mixed feelings as regards the Libra project. Last month, after receiving heat from US legislators, several firms were said to have distanced themselves from the cryptocurrency.
However, the majority of the members from both financial and technological worlds ranging from Paypal, ebay, Visa, Mastercard and even ride-sharing giant Uber seems to be still in the game. This has led many members of the global anti-trust movement to wonder if Facebook is creating a crypto mafia with the others as members and Mark Zuckerberg becoming the last Godfather of them all.
Apart from that, it has been reported that strategic partner to the social media giant and artificially intelligent chatbot developer Servicefriend has been acquired by Facebook and several of its senior management have joined its cryptocurrency subsidiary.
Having worked with Facebook for customer service chatbots on messenger and with other technology giants, this strategic acquisition indicates that Facebook may be looking into the deployment of artificially intelligent chatbots that will assist with the over one billion users of Libra.