/Facebook’s Libra Association Shrugs Off Regulatory Concerns, Prepares Launch for 2020 – CCN.com

Facebook’s Libra Association Shrugs Off Regulatory Concerns, Prepares Launch for 2020 – CCN.com

Bertrand Perez, the general director of the Libra Association, has expressed confidence that Facebook’s stablecoin will launch during 2020.

Speaking to French publication Les Echos, Perez indicated that while the Libra Association is expecting talks with regulators to continue, the project is slated for launch during the second half of next year.

Perez also stated that the 28-member association is currently in the process of finalizing its charter, expecting the publish such “in the coming weeks.” Perez believes that Libra’s governing will comprise 100 members by 2021, adding that the association has received “many requests, many more than a hundred.”

The director-general indicated that the association has global ambitions, stating:

“Maybe we will eventually have a presence in other European countries and in Asia.”

The Weighting of Libra’s Asset Basket Still Under Consideration

Libra, Facebook, Bitcoin
Facebook’s crypto project has triggered a substantial backlash across industries and governments. | Source: Shutterstock

Perez stated that the basket of assets backing Libra will include the U.S. dollar, euro, yen, pound, and Singapore dollar, in addition to “very short-term government debt (less than one year).”

While the director-general stated that the weighting of the basket is still under consideration, he noted that “the dollar should be very significant, around half.”

Should a crisis affect one of the assets backing the stablecoin, Perez stated that the decision on whether to remove the asset would require a two-thirds majority vote from the association’s members.

The director-general also sought to placate fears surrounding the risk of a fiat currency’s inclusion in the basket destabilizing its value, stating:

“It is their monetary policies that will influence the Libra through the basket, and not the other way around.”

France’s Finance Minister Says Libra Threatens ‘Monetary Sovereignty’

Despite Perez’ confidence that Libra will launch in roughly one year, the proposed stablecoin has been critically received by regulators.

In recent days, France’s finance minister, Bruno Le Maire, expressed concerns that Libra may threaten the “monetary sovereignty” of European nations.

Last modified (UTC): September 13, 2019 5:21 PM

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