Bank of England Governor says Facebook libra cryptocurrency has its uses

Bank of England Governor says Facebook libra cryptocurrency has its uses

The head of the United Kingdom’s central bank has said Facebook’s new libra cryptocurrency could useful if it can conform to regulatory demands.

 

Speaking at a conference of central bankers in Portugal, Mark Carney, governor of the Bank of England (BoE), delivered mixed reviews of libra. This stablecoin for Facebook has sparked predictions of blanket bans by governments.

“The governor said the BoE was there to guarantee financial and monetary stability and would look at Facebook’s proposals ‘very closely and in a co-ordinated fashion at the level of the G7, the Bank of International Settlements, the Financial Stability Board and the IMF,’” the FT wrote.

Carney said that an open door view of libra should still prevail prior to Facebook assuaging regulators’ fears with United States lawmakers already demanding the company halt development altogether pending discussions.

A Congresswoman Maxine Waters who is the Chairwoman of the House Financial Services Committee, wrote in a statement:

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,”

“Facebook executives should also come before the Committee to provide testimony on these issues.”

Carney foresees libra gaining traction in countries such as the U.S., where informal movement of smaller amounts of cash in particular are both slow and costly.

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