Singapore's Temasek ties up with Libra project, also backed by Facebook

The state investor of Singapore, Temasek Holdings has tied up with Libra digital currency project which is backed by Facebook. The project has faced intense scrutiny from global regulators worried its launch could erode national control over money.

The entry of Temasek, which latest figures show has a portfolio value of just over S$300 billion ($210 billion), was announced by the Switzerland-based Libra Association, the entity managing the digital currency project, late Thursday.

Temasek is a prominent backer of the project. Earlier, other prominent companies like Mastercard, Visa Inc and PayPal ditched the scheme.  

Libra, which also added cryptocurrency investor Paradigm and private equity firm Slow Ventures to its roster, said Temasek offered a “differentiated position” as an Asia-focused investor.

In a separate statement, Deputy CEO of Temasek International, Chia Song Hwee, said, “Blockchain technology can play a transformative role in payments networks by enhancing cost efficiencies, creating new business opportunities and accelerating financial inclusion.”

“Our participation in the Libra Association as a member will allow us to contribute towards a regulated global network for cost effective retail payments,” he said.

The prospect of Facebook’s 2.5 billion users adopting Libra has led to intense scrutiny from global regulators.

In April, Libra’s governing body said the planned digital currency will be linked to individual national currencies and overseen by global watchdogs, in a scaled-back revamp it hopes will win regulatory approval.