A claim got risen that cryptocurrency project is risky to the financial stability of the world. Bertrand Perez, Managing Director of Libra Association and COO, disgraced all talks over stout breakage to the monetary policies with currencies enshrined in the Libra Reserve. He also said that a number of government bonds and a basket of fiat currencies will support the Libra Digital currency.
Their monetary policies will have an effect on Libra through the basket. But that type of claims appear as unjustified to the head of the Facebook-led Libra Association. Against all comments thrown to the person, he explained with the details on the reserve. The reserve is consisted of U.S. dollar, the euro, yen, pounds sterling and Singapore dollar.
The investment procedure will be accomplished in the basket currencies as a very short time government debt. Using those currencies of mentioned countries the investment will be done indeed. The amount of reserve will be less than $200 billion. The reserve is low in the global financial market.
The head of the association also talked about any clash happens in any currency of the basket then what will be their subsequent step indeed. They will take it out from the basket in case of that type of collapse. A decision will then be taken by the vote of two-third members of the association. However, they are doubtful about weighting the basket.
Libra wants to reach the number of members to 100 on board within subsequent year. Based on their activity and area of working, Perez said these will be selected objectively. Libra saw remarkable pushback from regulators. But Bruno Le Maire, the French Economy and Finance Minister, aggressively said they can’t authorize the development of Facebook Coin on European soil. With a solving these problems, Libra intentionally planned to launch its initial service after the white paper got published. Libra was about to be authorized as a payment system in Switzerland but there are lacking of regulation procedures.