Libra Update: What’s Happening with Facebook’s Cryptocurrency?

Facebook’s cryptocurrency Libra continues to raise interest within the cryptosphere. And despite many regulators and countries protesting against using the cryptocurrency, Libra is marching forward.

Every day we can read about new Libra update. So, in today’s blog post, we decided to gather the most important news about Facebook’s cryptocurrency.

Let’s dive in.

Libra will be half-backed by US dollar

We already know that Libra is a stablecoin and it’s backed by real money. The thing is that we didn’t know exactly which money would be backing Libra.

However, in a letter to Fabio De Masi, a German legislator, Facebook revealed that the US dollar would be backing up Libra by 50%. The other support will come from the euro (18%), Japanese yen (14%), British pound (11%) and Singapore dollar (7%).

Obviously, the Chinese yuan isn’t included among the currencies that will back Libra. This could be for different reasons. For instance, American politicians have been scrutinizing Libra in fear of Chinese influence. Therefore, excluding the yuan definitely works in Libra’s favor.

Meanwhile, China is working on its own cryptocurrency.

IBM is open to working with Libra update

According to CNBC, IBM is open to working with Libra. Jason Kelley, the general manager of blockchain services at IBM, stated that Facebook’s cryptocurrency can help with bringing legitimacy to blockchain technology, and make it mainstream.

IBM is known as a strong believer in blockchain technology, and the company even has it’s own blockchain. Kelley also stated that IBM is ready to collaborate with anyone applying blockchain in different industries.

Chat-bot for Calibra

Facebook recently confirmed that it has acquired Servicefriend, the artificial intelligence-based chat-bot startup. Despite that Facebook hasn’t specified what they’ll be using a bot for, the answer is obvious.

Calibra, Libra’s digital wallet, is in development, and it’s logical to include customer service in the project.

Moreover, Servicefriend has already worked on Facebook’s platform. In fact, it’s the company that built bots for Messenger.

France doesn’t accept Libra

Libra is struggling to find support in Europe, and France is a huge obstacle in the way. Recently, French Finance Minister Bruno Le Maire said that France won’t allow Libra’s operations in Europe.

The Minister also stated that Libra represents risk for sovereignty, and that it can be used for abuse of market dominance. Moreover, Le Maire announced that France would block the development of Facebook’s digital currency in Europe, because it threatens the monetary systems of governments.

Zuckerberg meets with senators concerned over Libra

Facebook’s CEO met with senators concerned over Libra in a restaurant in Washington, DC. According to CNBC, the meeting was organized on Facebook’s initiative, and Zuckerberg was faced with some tough questions about Libra.

This allowed to the lawmakers to hear about the project first hand, and to get answers for their concerns.

Final words on Libra update

Although lawmakers and regulators are protesting, and France is threating to block Libra in Europe, the launch is set for 2020. Facebook is pushing forward to convince officials and governments, and coming up with ideas to improve the digital currency.

Still, Libra has a long way to go before becoming mainstream and accepted.


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