The managing director of the Libra Association (which is developing Facebook’s Libra cryptocurrency) said that the coin could be provided with reserves of up to $200 billion. However, it will not affect the traditional economy in any way.
Libra and $200 billion
In an interview with French newspaper Les Echos, Bertrand Perez, Managing Director and Chief Operating Officer of the Libra Association, said that Libra cryptocurrency reserves are likely to store up to $200 billion in security. The lower bar, he claimed, is "several tens of billions."
Libra’s reserves will mainly consist of the world’s major fiat currencies: the US dollar, the euro, the pound, the yen, and the Singapore dollar. Furthermore, the project may store short-term government bonds of the countries with these currencies, Perez states.
The director believes that such a sum will not affect the monetary policy of the authorities. On the contrary, "monetary policy will affect the reserves." Therefore, he is convinced that allegations of Libra’s ability to undermine central banks’ influence are simply "baseless."
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- Libra Association now has 28 members, including Visa, MasterCard, and Uber. Perez says that next year their number should expand to 100 companies and non-profit organizations.
- According to him, the association plans to release Libra in June 2020.
- On September 12, the head of the Ministry of Economy and Finance of France Bruno Le Maire declared that France would not "let Libra in European land in this form".
- Top executives of the European Central Bank, US authorities, and other countries criticized Facebook’s cryptocurrency.