Bertrand Perez the head of the Facebook Libra Association has spoken out over claims that its emerging cryptocurrency is a threat to global financial stability.
In his interview with French news outlet Les Echos, Perez highlighted the short-medium term objectives of Libra and also hinted to a possible Q3 2020 launch.
Currently the Libra project has 28 members and will likely grow to at least 100 before its anticipated launch next year. Each organization will be required to pay a $10 million entry fee to become part of the Libra association.
Perez noted that they are not just targeting the big financial and blockchain firms. ‘We target 100 members next year and we will select them objectively based on rules and criteria defined according to their areas of activity (NGOs, commercial companies, blockchain groups).’
The Libra currency basket will include FIAT currencies such as the dollar, the euro, the yen, the pound sterling and the Singapore dollar. These will be used to back the Libra digital currency and wil amount to no more than $200 Billion. Perez notes that the USD should make up around half of the basket but also implies a currency can be removed completely from the basket if there is a crisis between now and Libra’s launch.
Perez was firm in his words that they are not positioning themselves as a global asset management firm akin to Blackrock. ‘This is why the fears about the destabilizing aspect that this reserve could have on the monetary policy of the central banks whose currencies appear in our basket do not seem to us to be justified. It is their monetary policies that will influence the Libra through the basket and not the other way around.’ He further explained that Libra will be influenced by monetary policies and not the other way around.
Global retail and financial giants already onboarded include Paypal, Uber, Visa and Mastercard, more names are likely to be released by the association prior to final launch in 2020.