Facebook continues to move ahead with its cryptocurrency plans. The social media company sees the global scope of cryptocurrency trading as evidenced by the decision to add the Singapore dollar to Libra’s basket. Facebook’s decision to expand its cryptocurrency endeavors to include Singapore’s businesses and private citizens is revealing. Facebook wants Libra to grow, as do the other partners in the effort. While Facebook gets most of the publicity regarding Libra, different companies work with Facebook to form a cryptocurrency partnership.
The U.S. dollar is currently part of the Libra basket. The Singapore dollar joins the U.S. dollar along with the Japanese yen, the British pound, and the euro.
Singapore’s market could turn into a lucrative one for Facebook. A tremendous amount of global commerce runs through Singapore. If Libra becomes a popular currency asset in Singapore, Facebook and the Libra Association could do well.
In the U.S., some lawmakers wish to put roadblocks up against Facebook’s cryptocurrency plans. The unregulated nature of cryptocurrency exchanges and wallets concerns politicians and regulators in the U.S. At one point, there were public calls for Facebook to apply for a bank charter. Whether that comes to pass is anyone’s guess.
Regardless of political pressures, Facebook would never give up intentions to launch Libra in the United States. The U.S. market is too lucrative. As a publicly-traded company, Facebook wouldn’t do its shareholders any favors by looking exclusively outside the U.S. market. If Libra is legally barred in someway from trading in the United States, however, Facebook has no choice in the matter.
Interestingly, U.S. pressure appears to drive Facebook from adding the Chinese yuan to the Libra basket. Concerns over the Chinese government’s potential manipulation of Libra assets fuel U.S. lawmaker lobbying against the yuan. Facebook and its partners likely have strong intentions to enter the Chinese market, though. The vast market opens doors to billions of dollars in potential profits.