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© 2019 Bernard Marr, Bernard Marr & Co. All rights reserved
About Libra
• Libra is also being designed as a “stablecoin.” The value of Libra units in circulation will
be tied to assets made up of various currencies stored by the Libra Association. This is
to minimize the traditional volatility of cryptocurrency. In a letter Facebook sent to
Fabio De Masi, a German politician, Libra will be backed by the U.S. dollar (50 percent),
euro (18 percent), Japanese yen (14 percent), British pound (11 percent) and Singapore
dollar (7 percent). Interestingly, the currency of the world's second-largest economy,
the Chinese yuan, is absent. There are pros and cons to the yuan not being included,
but some believe its omission could help assuage concerns of American regulators.

Published in: Economy & Finance
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