Facebook has revealed more details about its upcoming launch of the Libra cryptocurrency, saying that it wants to link the system with some of the largest national currencies.
The social media giant told US senators that Libra would be pegged to a number of major currencies, including the US dollar, the euro, the yen and the British pound.
Facebook is about to launch Libra and its Calibra digital wallet next year, but has not fully understood what form these two offerings will take, although Libra will not launch while all the regulatory issues are not resolved.
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Facebook is outlining its plans to US lawmakers as it seeks to assuage concerns about Libra following discussions that took place in July with the US Senate Banking Committee.
The latest clarification came after Democratic Sen. Mark Warner raised concerns that China could pressure the company to include the yuan in its system.
Warner urged the Libra Association, Facebook's arm that is leading the launch, to exclude the yuan, saying China is trying to further stabilize its own currency.
"Any decision to add or add a new currency to the Libra Reserve would be made based on all the facts and circumstances of the time, including direct or indirect regulatory restrictions," wrote Facebook.
The company also suggested that Libra could be launched outside of the United States, despite these concerns.
"We understand that the Libra Association will not offer the Libra digital currency in any country until it has fully addressed regulatory concerns and received the appropriate approvals," Facebook said, noting that Ella would seek to comply with US regulatory requirements.
Source: Bloomberg