Bloomberg reported on Sept. 9 that Facebook told the U.S. senators about the currencies they are looking to peg their stablecoin with.
Libra cryptocurrency will be backed by several national currencies, as per the report. These include the U.S. dollar, Euro, Japanese yen, British pound, and Singaporean dollar. However, Facebook may exclude Chinese yuan on the group of their reserve assets as per Bloomberg.
There are also concerns from Virginia Democratic Senator Mark Warner that China may push the Libra Association to include Chinese Yuan on the list of their stablecoins. As China has encouraged governments to include their Chinese yuan currency in their reserve holdings. Warner asked Facebook to commit on excluding it from the Libra basket.
Facebook reportedly responded by saying that any final decision regarding the backing currencies is decided by The Libra Association.
Facebook also left an open the possibility that the Libra Association’s digital currency may launch outside the U.S.
Even if U.S. regulators still have 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.”