Bank of England Governors Lauds the Potential of Facebook’s Libra But Knows Challenges Are Coming
Mark Carney, the governor of the Bank of England., recently told the Financial Times that he is open-minded regarding the Libra token from Facebook. He, however, warned that mass adoption of the new token would subject it to serve regulation by relevant financial oversight authorities.
According to Carney, Libra is a double-edged sword. He believes that the token has the potential to offer a free and instant payments solution to people living in countries where moving money is costly and time-consuming, in the United States. However, if the project gains popularity, Carney is confident that it would attract stringent regulations aimed at curbing money laundering and hacking, as well as maintain the privacy of users.
Moving on, Carney revealed that the Bank of England would continue monitoring the progress of the Libra token. The bank will also coordinate efforts with the G7, the Bank of International Settlements, the IMF, and the Financial Stability Board. He concluded by saying that the token will not get a free pass from regulatory authorities.
Earlier this week, Facebook published the Libra whitepaper. The token is scheduled to launch in 2020 and will allow users to purchase items or send money at low costs. The token will be accessible from online platforms as well as partnering merchant stores.