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Facebook wants to tie Libra cryptocurrency to the dollar

Cryptocurrencies
(Image credit: vjkombajn/Pixabay)

Facebook has revealed more details about its upcoming Libra cryptocurrency launch, stating that it wants to tie the system to some of the biggest national currencies around.

The social media giant has told US senators that Libra will be tied to a number of top currencies, including the US dollar, euro, yen and British pound.

Facebook is set to launch both Libra and its Calibra digital wallet next year, but has been tight-lipped on what form both offerings will actually take - although it has said Libra won't launch until all of the regulatory issues are addressed.

Tied

Facebook is currently laying out its plans to lawmakers in the US as it looks to allay concerns around Libra following grilling back in July by the US Senate Banking Committee. 

This latest clarification comes after Virginia Democratic Senator Mark Warner raised concerns that China may push the company to include the yuan as part of its system. 

Warner has urged the Libra Association, the arm of Facebook governing the launch, to exclude the yuan as he believes China is attempting to further stabilise its own currency.

“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,” Facebook wrote.

The company also suggested that Libra may launch outside the US, despite these concerns.

“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,” Facebook wrote, noting that it would look to comply with U.S. regulatory requirements.

Via Bloomberg