Mark Carney Defends Facebook’s Libra Cryptocurrency
Mark Carney has moved to defend Facebook’s digital currency citing the United Kingdom’s "slow and expensive" payments system is “not good enough in this day and age”.
Moreover, the Bank of England Governor laid his case on revolutionary payment systems, just days after key backers Visa and MasterCard exited the Libra project. He emphasized that Facebook must meet the same stringent standards as other financial firms if it wants to move forward.
In addition, as per the report, Carney pointed out the shortcomings of the current financial system. Due to the inefficiency of these systems, he thinks that companies like Facebook should engage in projects like Libra
Additionally, Carney criticized the high costs of transferring money. Hey said that they punish small businesses and can cost firms as much as 200 basis points per transaction. He added that despite the high cost, the process is too slow:
“That’s not good enough in this day and age. Those payments should be instantaneous; it should be the same as us exchanging a banknote online. It should be virtually costless and it should be 100 per cent resilient.”
Regulations Stand Though
According to Carney, there can be multiple solutions to the problem. He also said that the problem “is to bring online payments and other payments up to the standard that is found in a number of major emerging economies and a few advanced economies.” However, he warned companies trying to take on these challenges; developments will be strictly scrutinized by those in authority:
“In terms of how this will proceed or not going forward, this will not be like social media. This will not be a case where something gets up and starts running and the system tries to work out after the fact how it’s regulated. It’s either going to be regulated properly, overseen properly, or it’s not going to happen.”
In conclusion, back in August Carney suggested replacing the U.S dollar with a cryptocurrency such as Libra; to transform the global financial system.
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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