After much speculation from observers, Facebook has reportedly revealed the composition of the basket of currencies it plans to use to back its Libra cryptocurrency, according to Der Spiegel. The token will apparently be backed by U.S. dollars, euros, Japanese yen, the British pound, and Singapore dollars.
Facebook confirmed the composition in a response to German Bundestag member Fabio De Masi. Der Spiegel reports that fully half of the token’s backing will come from U.S. dollars and short-term government bonds, with euros and euro-denominated bonds making up another 18 percent of the basket. The yen, pound, and Singapore dollar – and related government bonds – make up 14 percent, 11 percent, and 7 percent of the basket, respectively.
Notably, the Chinese yuan was not included in Facebook’s list, which some observers have said could be a possible concession to U.S. Senators who remain deeply skeptical of the Libra project. Some U.S. officials have opposed any move to include the yuan in Libra’s currency basket.
For his part, De Masi has expressed concerns that Libra could become a “mega-financial monopoly” if its plans are allowed to proceed as announced. He has also noted his disappointment at Facebook’s failure to promise not to use collected user financial data for its own purposes, which he has described as a threat to freedom and financial stability.