The Libra team deny claims that Libra is a threat to financial stability
|Libra's Chief Operations Officer (COO) Bertrand Perez has insisted that Libra will not be a threat to financial stability.
He said that Libra would be dependant on Central Banks and not the other way around.
His point is that Libra would be backed by a group of fiat currencies and government bonds.
He once again spoke about the currencies involved and said they would include the euro, US dollar, Japanese Yen, Sterling and the Singapore dollar.
In terms of mechanics, he said that the currencies would invest in government bonds that have no longer than a one-year maturity. Furthermore, Perez said the reserve amount would not exceed a maximum of USD 200 billion.
Lastly, he said that if any of the currencies had a crisis it would be removed from the pool of currencies. The USD is the strongest of all the basket and would, therefore, be the majority in the basket.
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