Facebook's stablecoin will be backed by the US dollar, the euro, the yen, the pound sterling and the Singapore dollar. Therefore, the Chinese yuan will not be included in the basket, Bloomberg reports.
Facebook's decision comes after US Senator Mark Warner said China could convince the Libra Association to add the RMB to the basket that will back its stablecoin. According to Warner, China has been pressuring authorities in other countries to add their national currency to their reserves, which is why the politician has asked Facebook not to include the yuan in the basket of currencies that will back Libra. Facebook has said:
"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. 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."
An official from the People's Bank of China has recently said that China is working on a stablecoin which is very similar to Libra, but it is not a copy of it.
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