Libra Backed by Major Fiats
The Libra Association, which has been made famous with the GlobalCoin and Facebook, have announced that they’ll be backing their crypto coin with fiats. These fiats include the Euro, Yen, British Pound Sterling, US Dollar and Singapore Dollar. This announcement was made directly through the Bloomberg Report and was perpetrated to respond to the concerns noted by Mark Warner. The Virginia Governor expressed his concerns relating to Chinese officials demanding that the Libra Association include the Yuan as a fiat. Luckily, Facebook and the Libra Association took the advice the US Authorities, deciding not to implement the Yuan Fiat.
The Libra Association didn’t specify if the Yuan would be added in the future. It’s been made clear that they’re solely responsible for any problems or concerns relating to their GlobalCoin digital currency. The company’s official statement reads: “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 Setbacks
It won’t be surprising if Facebook undergoes a series of setbacks with these newly announced fiats. The social media giant and their association of partners have faced significant delays from worldwide governments. The United States of America required that Facebook elites provide legal information at two Senate hearings. Additionally, the European Markets and Securities Authority is already investigating the digital currency for anti-trust clauses. It appears the Facebook has had an unfair advantage with GlobalCoin as a result of their security breaches in 2018.
The social media giant is doing everything in its power to fight against the destructive legislation on GlobalCoin. They’ve hired countless lobbyists to help sway the decision of individuals in Europe and America. Until then, The Libra Association stated: “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.”