BoE: Mark Carney gives Facebook currency cautious welcome

Carney gives Facebook currency cautious welcome

Bank of England Governor Mark Carney gave Facebook’s proposed digital currency Libra a cautious welcome in a major speech on Thursday. He said it could substantially lower costs and increase financial inclusion, but needs regulation. Mr Carney also announced that non-banks will be able to hold Bank of England accounts.

Bank of England Governor Mark Carney gave Facebook’s proposed digital currency Libra a cautious welcome in a major speech on Thursday.

He said it could substantially lower costs and increase financial inclusion, but needs regulation.

Mr Carney also announced that non-banks will be able to hold Bank of England accounts.

And he highlighted climate and sustainability concerns.

Mark Carney has given a swift and positive reaction to Facebook’s plan, unveiled just last week, and one that will no doubt please Mark Zuckerberg and the rest of the Libra members.

However, while Mr Carney said he has an open mind, he is not offering an open door. 

Unlike social media, where regulation is struggling to catch up after its mass adoption by billions of users, Mr Carney promised to make sure regulation to protect against risks including data privacy and money laundering is ready in advance.

Libra is intended to be a currency that can be transferred via social media with its value based on a basket of real life currencies rather than the so-called crypto currencies whose value is not linked to existing exchange rates. 

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