It has been a pretty topic of discussion for the past few months and whether you love it or hate it, Facebook’s Libra is here to stay.
Lawmakers and economists have been wondering what the basket backing of the stablecoin will be made up of and what its impact will be on the world. Aside from the fact that the US dollar is likely to make up a big bunch of the asset, not much is known on what the stablecoin will consist of.
There is one thing in particular though that has intrigued a lot of investors and with the backdrop of the whole trade debate between the US and China, tied with China looking into making its very own cryptocurrency, how will the Renminbi/yuan fit in?
The Virginia Democratic Senator Mark Warner, according to a response to an inquiry, said that Libra is likely to include the US dollar, yen, euro, sterling and so on. However, according to some reports from Bloomberg, the Libra Association members could exclude the yuan from the Libra basket, in regards to “direct or indirect regulatory restrictions”.
This could be a good thing as China is unlikely to allow the use of Libra in local companies. Whether this is due to privacy worries or the fact that its own cryptocurrency seems to be a rival to Libra is unknown though.
As reported by Ethereum World News:
“China is known for being stringent not only against cryptocurrencies but also against foreign technology companies, having blocked its citizens from natively accessing Facebook’s services due to fears of the U.S.’ influence over the Chinese economy and the broader society.”
On top of this, there are concerns that China is actually manipulating its currency. Last month, the states Treasury said China is a “currency manipulator” amid a bunch of tariffs against the nation.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!