For the European regionLibra cryptocurrencyIn response to questions about the application, Facebook earlier replied to a letter from German MP Fabio De Masi, stating that Libra, which will be based on government legal tender, will be composed of 50% US dollars, XNUMX% euros, XNUMX% British pounds, XNUMX% Japanese yen and XNUMX% Singapore dollars.
According to Facebook, the US dollar will account for 50% of the fiat currencies underlying Libra, the euro will account for 18%, the Japanese yen will account for about 14%, the British pound will account for 11%, and the Singapore dollar will account for 7%.
As previously stated by Facebook, Libra will be based on existing government fiat currencies, including legal tender issued by various governments, or short-term government bonds, as well as assets such as gold of equivalent value. Compared with most current cryptocurrencies that use mainstream cryptocurrencies such as Bitcoin as the basis of exchange, it is relatively more stable and will not be deliberately hyped.
However, regarding Facebook's promotion of Libra cryptocurrency applications, not only European governments have expressed doubts, but even the US government has opinions, believing that if Facebook plans to enter the banking-related business development, it must comply with relevant laws and regulations. As for the Indian government, it has already stated thatWill not allowFacebook is promoting Libra services in India.
In order to promote Libra cryptocurrency services, Facebook saidWe will further communicate with government agencies, so that government agencies can have a more comprehensive understanding of cryptocurrency, and also cooperate with inquiries to explain the details of this cryptocurrency service.
