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Facebook’s Libra currency will get half its backing from the US dollar

This is not shocking given ’s dwelling turf and the typical power of the US dollar. The absence of sure currencies would possibly work in ’s favor, too. The absence of China’s yuan may appease American politicians scrutinizing the currency by assuaging their fears of Chinese affect. US officers have lengthy accused China of softening the yuan to assist its exports, and Libra’s combine would make {that a} non-issue.

Whether or not this stability (or reasonably imbalance) helps is one other matter. The backing ought to stop the volatility that has plagued Bitcoin and different cryptocurrencies, however France, Germany and different international locations are apprehensive Libra would possibly undermine their very own monetary techniques. Rock-solid help won’t matter a lot if Libra is not accessible in key international locations, particularly these international locations which might be alleged to underpin the digital cash in the first place.

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