Libra project: Facebook refuses to include Chinese yuan

Posted 10 September, 2019

The social network Facebook told US senators that the initial basket of currencies to secure the Libra stablecoin will include the US dollar, the euro, the yen, the British pound and the Singapore dollar. Thus, the social network responded to the concerns of Senator Mark Warner, who said that China could persuade the association to include its currency as well.

Warner emphasized that China was pushing the authorities of other countries to add its national currency to their reserves, after which he asked the social network not to include it in the Libra basket. Facebook's representatives noted that the final decision would be made by an international association, which included various companies.

“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,” stated the company.

The company also added that Libra would not be available in certain jurisdictions until it receives all necessary permissions from local financial regulators. 

Earlier, analysts at JPMorgan Bank said that Libra cryptocurrency does not have short-term liquidity mechanisms. Therefore, it will not be able to survive in conditions of economic instability, and project developers will face negative returns.

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10 September, 2019 16:08

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