The basket of currencies that will support the Libra stablecoin will comprise five national currencies. Chinese yuan is not in the list.

In a letter to German lawmaker and former MEP Fabio de Masi, Facebook revealed which currencies will be included in the basket of currencies that support Libra. According to the document, stablecoin will be supported by American dollars, euros, Japanese yens, British pounds and Singapore dollars.

The ratio of currencies in the basket will be as follows: the American dollar will have 50%, the euro 18%, the Japanese yen 14%, the British pound 11%, the Singapore dollar 7%.

Linking the stablecoin exchange rate to traditional currencies is designed to solve the problem of possible Libra exchange rate volatility.

As follows from the letter, the Chinese yuan, the national currency of the second-largest economy in the world, is not represented in the Libra basket of currencies.

It could be Facebook's strategic decision not to include the Chinese yuan in the basket, as Facebook hopes that the renunciation of the yuan will help speed up the approval of the Libra launch project with US regulators.

French Finance Minister Bruno Le Mayor said earlier that the launch of Libra will be blocked in Europe, as this project poses a threat to "monetary sovereignty."

Meanwhile, China sees Libra as a direct threat to its financial system. According to employees of the Chinese central bank, the appearance of Libra in the international market will further strengthen the influence of the American dollar in the world. In response to these risks, the People’s Bank of China is developing its own central bank digital currency (CBDC), although the structure proposed by PBoC resembles just a decentralized payment system rather than a true cryptocurrency.