Facebook is keen to add as many fiat currencies to Libra project and the latest currency addition is the Singapore dollar in Libra basket.
Facebook Libra coin is embroiled in much controversial news these days. The latest being what fiat currencies will provide support to Libra. Just this Monday, a letter was written by Facebook and addressed to U.S. senators in which the company expressed concerns about the possible influence of the Chinese government on Libra.
Earlier, Sen. Mark Warner (D-Va.) had written to Facebook asking them to refrain from including Chinese Yuan in the list of assets that back their digital currency. Facebook reportedly responded that the judgment to include Yuan in their basket of currencies would depend according to the state of affairs and specifics of the time which also includes regulatory concerns regarding Libra. The company left the final choice to Libra Association and restricted from making a direct statement.
What it means to add the Singapore dollar in Libra Basket
As per Bloomberg, a file of probable currencies was provided by Facebook to be added to the reserve of Libra. It did include the Japanese Yen, U.S. dollar, British Pound, and the Singapore dollar. However, it had no direct mention of excluding Chinese currency from this list. So, the final decision is still hanging in the air.
Blockchain lead of Facebook, David Marcus, has mentioned previously that the currency basket which would back their Libra would consist of U.S. dollars to the tune of 50 percent and the rest would consist of low-risk assets and established sovereign currencies having notable standing.
Controversial launch, stalled progress
Facebook Libra coin was first unveiled in summer 2019, and it was to consist of two tokens primarily. The first would be a fiat-backed stablecoin. The other would be a security token for governing council members which allows them to oversee the network.
However, the project faced high initial resistance with many regulatory authorities, including in the U.S.A., objected to its development until all the questions about its legality are answered.
In July, David Marcus also testified before the Senate Banking committees and House Financial Services and tried to reassure the authorities that the Libra’s aim was not to disrupt the global monetary setup.
Despite facing so many odds, the company has reiterated its pledge to develop the currency. Chinese Yuan is still in doubts, but the addition of the Singapore dollar in Libra will ensure its exposure to the South-Asian region. Facebook has also said that it would be launched only after all the issues related to its regulation have been resolved.