Facebook's Libra Crypto Stablecoin Omits Chinese Yuan From List Of Backed Global Fiat Currencies

Facebook’s cryptocurrency, Libra, is backed by a number of national fiat currencies including the US Dollar, Singapore dollar, Euro and British pound according to a report released by Bloomberg on Sept 10. The social media giant released its initial report to the Senate on the basket of currencies backing the stable coin – which surprisingly did not include the Chinese Yuan.

Facebook Inc. excludes Chinese Yuan From Libra backers

Facebook Inc. released its potential currency backers for its Libra stable coin following the calls by Virginia Democratic Senator Mark Warner for Libra Association not to include the Chinese Yuan in its basket of fiat currency backers. China has been calling on banks around the world to increase their Chinese Yuan reserves amidst the trade wars with US.

Despite the list excluding the Yuan, the final decision on which currencies back the Libra stable coin will be made by the Association, not Facebook alone. A section of the report from Facebook read,

“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 27 member consortium is looking to offer the stable coin across the world despite the US lawmakers and senators having regulatory issues about the crypto. The report reads,

“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.”

China Plans to Launch its Stable Coin

Reports from the People’s Bank of China confirmed the possibility of launching its own stable coin before Facebook’s Libra. Despite official reports denying that China is launching a cryptocurrency in November, the country is researching on Libra and the launch of a similar token backed by the Yuan.

Chinese investors have a love history with Tether (USDT), a stable coin backed by the US Dollar. The company announced on Aug 21. they will be launching the CHNT token, a stable coin backed by the Chinese Yuan to appease their Chinese investors.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,469FansLike
2,795FollowersFollow
4,232FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

CoinDCX Becomes The First Indian Crypto Exchange To Launch Token Staking Services

Indian cryptocurrency exchange, CoinDCX, becomes the first in the country to launch simple staking services for its users. First reported on Coindesk, the staking...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

Dapper Labs Raises $12M with NBA Players from the Brooklyn Nets & Miami Heat Participating

Vancouver-based Dapper Labs has raised $12 million in its latest financing round with additional backing from Coinbase ventures and Distributed Global. Its existing investors...

DeFi App Aave Creates First Credit Delegation Loan to DeversiFi Decentralized Exchange

DeFi lending platform, Aave completes its first-ever ‘credit delegation’ as DeversiFi borrows over $230,000 without posting collateral. The service agreement was signed on...

Bitcoin Futures Trading at a High Premium; Already Hitting $12,000 on CME

Bitcoin has yet again gained momentum, with people expecting for $12k to hit soon. According to analyst Mati Greenspan, for a sustainable rally, a...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today