Libra’s Basket Breakdown
After months of speculation, Facebook has officially revealed its percentage breakdown for their upcoming digital currency “Libra” and its cryptocurrency basket. It’s been known for some time that 50% of the breakdown basket comprised of the US Dollar. However, after insiders with Project Libra spoke with German reporters, the remaining percentages are publicly available.
The remaining 50% comprises of the Yen, British Pound, Euro and Singapore Dollar. The Yen holds 14%, the British pound 11%, the Euro has 20%, and the Singapore Dollar has 7%. Shockingly, this cryptocurrency basket doesn’t have any connection to the Chinese Yuan. This is the second-largest tendered currencies worldwide, but after a considerable backlash in China against Libra, the upcoming global cryptocurrencies have been forced out of the market space before becoming an operational coin. Many analysts believe this decision was also prompted by the trade war between the United States and China.
The Concerns
This information was broken down through a German Newspaper, which is a considerably unlikely source, has prompted for new concerns with legislations across Germany and Europe. Fabio De Masi, a current legislator for Germany and former politician with the European Parliament, has expressed his concerns in a public letter. The left-wing politician is one of many added to the list of individuals opposing the upcoming digital currency. He’s publicly stated that he believes Libra goes against individual freedom, financial stability and democracy. Fabio also noted that Facebook won’t purchase deposit insurance and that financial information will be harvested for the benefit of corporations.
The goal for Libra is to facilitate global transactions through their messaging platforms like WhatsApp and Messenger. Facebook has received backing from corporations like PayPal, Visa and Uber. The numerous large corporations connected to Project libra has brought severe concerns. It seems like worldwide corporations are trying to become the new banking institutions, which would prompt global changes on a never before seen scale. Germany isn’t the only country that has raised concerns over Libra. India, China, the United States and multiple other nations have expressed their plans to block Libra from being operational in their countries. Luckily, Facebook and their partner’s efforts to have global dominance over financial markets are failing. It will be interesting to see if legislators ban similar cryptocurrencies like the Central Bank Digital Currency from China or the Gram Token from Telegram. The monumental challenges with digital currencies might be severe, but they will be solved.