Facebook’s Libra Will Not Include China’s Yuanby Fintech News Hong Kong September 24, 2019
In a letter responding to German legislator, Fabio De Masi, Facebook has revealed the breakdown of its basket of global currency that will underpin its digital coin, Libra. According to a report by Reuters, the US Dollar will make up 50% of the basket, while China’s Yuan will not be included in the list.
The report speculated that the exclusion of China’s yuan could potentially smooth the path for Libra in the United States where there’s a growing tension between the two economies.
The report added that the rest of the global currency bucket is as follows; the euro with 18%, the yen with 14%, the British pound with 11% and the Singapore dollar with 7%.
Meanwhile, it was previously reported that China is close to issuing its own central bank-backed digital currency in response to Facebook’s Libra. There are 7 entities that are rumoured to be the first to receive China’s digital currency and amongst them are tech giants like Alibaba and Tencent.